Question

Efficient portfolios are portfolios that: have the highest rates of return for a given level of risk are formed with securities offering highest rates of return regardless of their risk have highest risk and highest rates of return have lowest rates of return regardless of their risk are formed with securities offering lowest risk regardless of their returns

Answer 1

Answer: have the highest rates of return for a given level of risk

Explanation:

When it comes to investment, one must realize that there are investments with varying risks and these risks must be compensated for by the return offered. The return should therefore be based on the risk of the individual investment not a general risk.

This is what efficient portfolios do. They have investments that offer the highest rates of return for the given level of risk that those investments have so that the investor is receiving the highest return possible for their investment.