MENU
Consider you have the following efficient frontier graph with multiple portfolios on it. Which portfolio do you choose?
Larger image
Suggested Answer: A
Get Premium PfMP Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
37 comments · newest first
HA
Hana
11 months ago
Wait, is Portfolio B really that good? I thought it was risky.
NO
Nobuko
11 months ago
Portfolio C has the highest Sharpe ratio, right?
LE
Leana
12 months ago
Really? I’m not sure Portfolio A is worth it.
CR
Cristy
12 months ago
Portfolio D looks like the best risk-reward balance!
NO
Noel
1 year ago
I’d go with Portfolio B, solid returns.
IZ
Izetta
1 year 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.
MA
Man
1 year ago
I feel like Portfolio C might be the right choice, but I can't recall the exact criteria we used to evaluate them.
RO
Rolande
1 year 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.
ST
Stephaine
1 year 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.
KE
Kenia
1 year 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.
SK
Skye
1 year 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.
FR
Francene
1 year 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.
CO
Coral
1 year ago
This looks like a classic efficient frontier question. I'll need to carefully consider the risk-return tradeoffs for each portfolio.
BI
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'!
EL
Elmer
1 year ago
I'm leaning towards Portfolio A personally.
LU
Luke
1 year ago
Portfolio D seems like the best choice to me.
VI
Vicente
1 year ago
I would go with Portfolio A, it seems to have the highest return potential.
JE
Jerlene
1 year ago
I'm leaning towards Portfolio C, it looks like it has the highest return for the level of risk.
KR
Kristel
1 year ago
I would go with Portfolio C for sure.
WI
Wilda
1 year ago
I think I would choose Portfolio B, it seems to have a good balance of risk and return.
WA
Wayne
1 year ago
I think I would choose Portfolio B.
BI
Billye
2 years ago
Portfolio A? Are you kidding me? I might as well stuff my money under the mattress!
GE
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.
MI
Michell
1 year ago
I think Portfolio B is a good choice too. It's a balance between risk and return.
PE
Peggie
1 year ago
Portfolio A? No way, I'd go for Portfolio D. It has the highest return for the risk.
PA
Paz
2 years ago
Hmm, Portfolio D looks tempting, but I don't think my heart can handle that much volatility.
GI
Gilma
1 year ago
I think I would go with Portfolio B, it seems like a good balance of risk and return.
ED
Edgar
1 year ago
I agree, Portfolio D does seem risky.
ET
Ettie
2 years ago
I prefer Portfolio B as it strikes a good balance between risk and return, making it a safer choice in uncertain market conditions.
CY
Cyndy
2 years ago
I think Portfolio D is the best choice because it has the highest return and lowest risk compared to the other portfolios.
DA
Dacia
2 years ago
I'm going with Portfolio C. Gotta maximize that return, even if it means a little more risk.
RA
Rachael
1 year ago
Portfolio D looks like the best option to me. It has a good balance of risk and return.
TA
Tayna
1 year ago
I would go with Portfolio A. I prefer a more conservative approach with lower risk.
GL
Glory
1 year ago
I'm leaning towards Portfolio B. It seems like a good balance between risk and return.
MA
Mable
2 years ago
I think Portfolio C is a good choice too. The risk might be worth it for the higher return.
EF
Effie
2 years ago
I would choose Portfolio C because it offers the highest return for a given level of risk.
KE
Kenia
2 years ago
Portfolio B for sure! It's the perfect balance of risk and return.