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A feasible portfolio that offers the highest expected return for a given risk or the least risk for a given expected return is a (n)
Suggested Answer: B
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If the 8% return exactly equals the present value of the future flows ., NPV is zero), then simply determine the present value of the future inflows. Thus, Hopkins Company's initial cash outlay is $19,090 [($2,500)(PVIFA at 8% for 10 periods) + ($5J00)(PVlF at 8% for 10 periods ($2,500)(6.710) + ($5,000)(.463)].
33 comments · newest first
GE
Georgene
10 months ago
Totally agree, efficient portfolio is the way to go!
GE
Gertude
11 months ago
Wait, are we sure about that? Sounds off.
SA
Salina
11 months ago
Efficient portfolio is the right term here.
GO
Golda
11 months ago
I thought it was the optimal portfolio?
SH
Shizue
11 months ago
It's definitely the efficient portfolio!
GI
Gilma
12 months ago
I’m leaning towards "Efficient portfolio" since it relates to the risk-return trade-off we discussed. But I could be mixing it up with "Optimal."
FR
Freeman
12 months ago
I feel like "Optimal portfolio" sounds right, but I also recall something about efficiency in portfolios. Maybe it's a trick question?
DE
Delisa
12 months ago
I remember practicing a question similar to this, and I think it was about optimal portfolios. But now I'm confused if that's the same as efficient.
KA
Kanisha
1 year ago
I think the answer might be "Efficient portfolio," but I'm not entirely sure. We talked about it in class, and it seems to fit the definition.
KE
Keneth
1 year ago
Ah, I see what they're getting at now. The key is finding the portfolio that maximizes the risk-return tradeoff. That would be the efficient portfolio, so I'm going to go with option C.
ZI
Zita
1 year ago
Okay, let me walk through this step-by-step. We're looking for the portfolio that offers the highest expected return for a given risk level, or the least risk for a given expected return. That sounds like the definition of an efficient portfolio to me. I'll go with C.
MI
Micah
1 year ago
Hmm, I'm not totally sure about this one. I know it has something to do with portfolio optimization, but I'm a bit fuzzy on the exact terminology. I'll have to think this through carefully.
ME
Merilyn
1 year ago
This question seems straightforward - I think the answer is C, efficient portfolio. That's the term we've been learning about in class for the optimal risk-return tradeoff.
AL
Alayna
1 year ago
Hmm, this is a tricky one. I'm not totally sure which metric is considered the most important. I'll have to think through the different options carefully.
MI
Micaela
1 year ago
I'm torn between price fixing and horizontal division of markets. Need to read the options carefully.
HE
Hermila
1 year ago
I'm pretty confident I know the right answer here. Option B seems like the most logical choice.
WI
William
1 year ago
D) Effective portfolio. Wait, isn't that the same as efficient? I'm getting a bit confused here.
PA
Paris
1 year ago
C) Efficient portfolio. No problem, happy to help!
BE
Bettyann
1 year ago
D) Effective portfolio. Oh, I see. Thanks for clarifying!
ER
Ernie
1 year ago
C) Efficient portfolio. Yes, they are similar but not exactly the same.
BI
Billy
1 year ago
D) Effective portfolio
AL
Alisha
1 year ago
C) Efficient portfolio
TY
Tyra
1 year ago
B) Desirable portfolio
AI
Aimee
1 year ago
A) Optimal portfolio
GL
Gladis
1 year ago
A) Optimal portfolio. Sounds about right to me. Why overthink it?
DA
Dan
1 year ago
Why do you think that? Can you explain your rationale?
CA
Carolynn
2 years ago
C) Efficient portfolio. I'm pretty sure that's the correct answer, as it describes the most optimal portfolio for a given risk-return profile.
KI
Kimbery
1 year ago
D) Effective portfolio
FR
Francoise
1 year ago
C) Efficient portfolio
MA
Mabel
1 year ago
B) Desirable portfolio
LA
Lavelle
1 year ago
A) Optimal portfolio
EM
Emerson
2 years ago
I disagree, I believe the correct answer is C) Efficient portfolio.
DA
Dan
2 years ago
I think the answer is A) Optimal portfolio.