Q1. An investment manager is looking at ten possible stocks to include in a client’s portfolio. In order to achieve the maximum efficiency of the portfolio, the manager must:

A)   find the combination of stocks that produces a portfolio with the maximum expected rate of return at a given level of risk.

B)   include only the stocks that have the lowest volatility at a given expected rate of return.

C)   include all ten stocks in the portfolio in equal amounts.

Q2. Which of the following statements best describes an investment that is not on the efficient frontier?

A)   There is a portfolio that has a lower return for the same risk.

B)   There is a portfolio that has a lower risk for the same return.

C)   The portfolio has a very high return.

Q3. Which of the following statements concerning the efficient frontier is most accurate? It is the:

A)   set of portfolios where there are no more diversification benefits.

B)   set of portfolios that gives investors the lowest risk.

C)   set of portfolios that gives investors the highest return.

答案和详解如下：

Q1. An investment manager is looking at ten possible stocks to include in a client’s portfolio. In order to achieve the maximum efficiency of the portfolio, the manager must:

A)   find the combination of stocks that produces a portfolio with the maximum expected rate of return at a given level of risk.

B)   include only the stocks that have the lowest volatility at a given expected rate of return.

C)   include all ten stocks in the portfolio in equal amounts.

Correct answer is A)

The most efficient portfolio will be the one that lies on the efficient frontier. It will offer the highest expected return at a given level of risk compared to all other possible portfolios.

Q2. Which of the following statements best describes an investment that is not on the efficient frontier?

A)   There is a portfolio that has a lower return for the same risk.

B)   There is a portfolio that has a lower risk for the same return.

C)   The portfolio has a very high return.

Correct answer is B)

The efficient frontier outlines the set of portfolios that gives investors the highest return for a given level of risk or the lowest risk for a given level of return. Therefore, if a portfolio is not on the efficient frontier, there must be a portfolio that has lower risk for the same return. Equivalently, there must be a portfolio that produces a higher return for the same risk.

Q3. Which of the following statements concerning the efficient frontier is most accurate? It is the:

A)   set of portfolios where there are no more diversification benefits.

B)   set of portfolios that gives investors the lowest risk.

C)   set of portfolios that gives investors the highest return.

Correct answer is A)

The efficient frontier outlines the set of portfolios that gives investors the highest return for a given level of risk or the lowest risk for a given level of return. It is also the point at which there are no more benefits to diversification.

aba. god bless.. no more typo plz.

[此贴子已经被作者于2009-3-23 14:03:51编辑过]

thansk

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