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IMANET Exam CMA Topic 2 Question 83 Discussion

Actual exam question for IMANET's CMA exam
Question #: 83
Topic #: 2
[All CMA Questions]

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)

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Suggested Answer: B

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)].


Contribute your Thoughts:

William
1 months ago
D) Effective portfolio. Wait, isn't that the same as efficient? I'm getting a bit confused here.
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Alisha
16 days ago
C) Efficient portfolio
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Tyra
18 days ago
B) Desirable portfolio
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Aimee
27 days ago
A) Optimal portfolio
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Gladis
1 months ago
A) Optimal portfolio. Sounds about right to me. Why overthink it?
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Dan
2 months ago
Why do you think that? Can you explain your rationale?
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Carolynn
2 months 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.
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Kimbery
6 days ago
D) Effective portfolio
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Francoise
7 days ago
C) Efficient portfolio
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Mabel
13 days ago
B) Desirable portfolio
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Lavelle
20 days ago
A) Optimal portfolio
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Emerson
2 months ago
I disagree, I believe the correct answer is C) Efficient portfolio.
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Dan
2 months ago
I think the answer is A) Optimal portfolio.
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