PMI PfMP Exam - Topic 8 Question 75 Discussion

Actual exam question for PMI's PfMP exam

Question #: 75
Topic #: 8

[All PfMP Questions]

Consider you have the following efficient frontier graph with multiple portfolios on it. Which portfolio do you choose?

Larger image

APortfolio D

BPortfolio B

CPortfolio C

DPortfolio A

Show Suggested Answer

Suggested Answer: A

by Elenora at Sep 14, 2024, 10:38 PM

Limited Time Offer

25%

Off

Get Premium PfMP Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Hana

10 months ago

Wait, is Portfolio B really that good? I thought it was risky.

upvoted 0 times

...

Nobuko

10 months ago

Portfolio C has the highest Sharpe ratio, right?

upvoted 0 times

...

Leana

10 months ago

Really? I’m not sure Portfolio A is worth it.

upvoted 0 times

...

Cristy

10 months ago

Portfolio D looks like the best risk-reward balance!

upvoted 0 times

...

Noel

11 months ago

I’d go with Portfolio B, solid returns.

upvoted 0 times

...

Izetta

11 months ago

I’m leaning towards Portfolio D, but I’m a bit confused about how to weigh the trade-offs between risk and expected return.

upvoted 0 times

...

Man

11 months ago

I feel like Portfolio C might be the right choice, but I can't recall the exact criteria we used to evaluate them.

upvoted 0 times

...

Rolande

11 months ago

I think we practiced a similar question where we had to pick the portfolio with the highest Sharpe ratio. I wonder if that applies here too.

upvoted 0 times

...

Stephaine

11 months ago

I remember we discussed how to choose a portfolio based on risk and return, but I'm not sure which one is optimal here.

upvoted 0 times

...

Kenia

11 months ago

I think I'll go with Portfolio B. It looks like a good balance of risk and return, and it's closer to the efficient frontier than some of the other options.

upvoted 0 times

...

Skye

11 months ago

Portfolio D seems to have the highest expected return, so that's probably the best choice. I just need to double-check that the risk level is still within my comfort zone.

upvoted 0 times

...

Francene

11 months ago

Hmm, I'm a bit confused by the efficient frontier graph. I'll need to review my notes on portfolio theory to make sure I understand how to interpret this.

upvoted 0 times

...

Coral

11 months ago

This looks like a classic efficient frontier question. I'll need to carefully consider the risk-return tradeoffs for each portfolio.

upvoted 0 times

...

Billye

1 year ago

Hey, did you hear about the investment advisor who lost it all on the roulette table? Talk about an 'efficient frontier'!

upvoted 0 times

Elmer

1 year ago

I'm leaning towards Portfolio A personally.

upvoted 0 times

...

Luke

1 year ago

Portfolio D seems like the best choice to me.

upvoted 0 times

...

Vicente

1 year ago

I would go with Portfolio A, it seems to have the highest return potential.

upvoted 0 times

...

Jerlene

1 year ago

I'm leaning towards Portfolio C, it looks like it has the highest return for the level of risk.

upvoted 0 times

...

Kristel

1 year ago

I would go with Portfolio C for sure.

upvoted 0 times

...

Wilda

1 year ago

I think I would choose Portfolio B, it seems to have a good balance of risk and return.

upvoted 0 times

...

Wayne

1 year ago

I think I would choose Portfolio B.

upvoted 0 times

...

Billye

1 year ago

Portfolio A? Are you kidding me? I might as well stuff my money under the mattress!

upvoted 0 times

Gerald

1 year ago

I see your point, but I still prefer Portfolio C. It has a good mix of risk and return for me.

upvoted 0 times

...

Michell

1 year ago

I think Portfolio B is a good choice too. It's a balance between risk and return.

upvoted 0 times

...

Peggie

1 year ago

Portfolio A? No way, I'd go for Portfolio D. It has the highest return for the risk.

upvoted 0 times

...

Paz

1 year ago

Hmm, Portfolio D looks tempting, but I don't think my heart can handle that much volatility.

upvoted 0 times

Gilma

1 year ago

I think I would go with Portfolio B, it seems like a good balance of risk and return.

upvoted 0 times

...

Edgar

1 year ago

I agree, Portfolio D does seem risky.

upvoted 0 times

...

Ettie

1 year ago

I prefer Portfolio B as it strikes a good balance between risk and return, making it a safer choice in uncertain market conditions.

upvoted 0 times

...

Cyndy

1 year ago

I think Portfolio D is the best choice because it has the highest return and lowest risk compared to the other portfolios.

upvoted 0 times

...

Dacia

1 year ago

I'm going with Portfolio C. Gotta maximize that return, even if it means a little more risk.

upvoted 0 times

Rachael

1 year ago

Portfolio D looks like the best option to me. It has a good balance of risk and return.

upvoted 0 times

...

Tayna

1 year ago

I would go with Portfolio A. I prefer a more conservative approach with lower risk.

upvoted 0 times

...

Glory

1 year ago

I'm leaning towards Portfolio B. It seems like a good balance between risk and return.

upvoted 0 times

...

Mable

1 year ago

I think Portfolio C is a good choice too. The risk might be worth it for the higher return.

upvoted 0 times

...

Effie

1 year ago

I would choose Portfolio C because it offers the highest return for a given level of risk.

upvoted 0 times

...

Kenia

1 year ago

Portfolio B for sure! It's the perfect balance of risk and return.

upvoted 0 times

...