Efficient portfolios of N risky securities are portfolios that Group of answer choices have the highest risk and rates of return and the highest standard deviations. have the lowest rates of return for a given level of risk. have the lowest risk for a given level of return. are formed with the securities that have the highest rates of return regardless of their standard deviations. have the lowest standard deviations and the lowest rates of return.

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18 May, 04:58

Efficient portfolios of N risky securities are portfolios that Group of answer choices have the highest risk and rates of return and the highest standard deviations. have the lowest rates of return for a given level of risk. have the lowest risk for a given level of return. are formed with the securities that have the highest rates of return regardless of their standard deviations. have the lowest standard deviations and the lowest rates of return.

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Ellen Perkins · Answer 1

Have the highest risk and rates of return and the highest standard deviations.

Explanation:

The efficient portfolios of N risky operatives is the set of optimal portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return. And in other words, portfolios that lie below the efficient frontier are been described as sub optimal because they do not provide enough return for the level of risk. Portfolios that cluster to the right of the efficient frontier are sub optimal because they have a higher level of risk for the defined rate of return.