Dominant Portfolios Determine Which One of These Three Portfolios Dominates

Multiple Choice

Dominant Portfolios Determine which one of these three portfolios dominates another. Name the dominated portfolio and the portfolio that dominates it. Portfolio Blue has an expected return of 7 percent and risk of 10 percent. The expected return and risk of portfolio Yellow are 13 percent and 17 percent, and for the Purple portfolio are 9 percent and 14 percent.

A) Portfolio Blue dominates Portfolio Yellow
B) Portfolio Yellow dominates Portfolio Blue
C) Portfolio Purple dominates Portfolio Blue
D) Portfolio Purple dominates Portfolio Yellow