Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions

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)

Show Suggested Answer Hide Answer
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:

Carolynn
2 days 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.
upvoted 0 times
...
Emerson
3 days ago
I disagree, I believe the correct answer is C) Efficient portfolio.
upvoted 0 times
...
Dan
8 days ago
I think the answer is A) Optimal portfolio.
upvoted 0 times
...

Save Cancel