The line representing all combinations of portfolio expected returns and standard deviations that can be constructed from two available assets is called the
A) risk/reward tradeoff line.
B) capital allocation line.
C) efficient frontier.
D) portfolio opportunity set.
E) Security Market Line.

Question

Quizplus · Accepted Answer

The line representing all combinations of portfolio expected returns and standard deviations that can be constructed from two available assets is called the portfolio opportunity set. This set includes all possible portfolios that can be formed with a given pair of assets, showing the trade-off between risk (standard deviation) and expected return for those portfolios.

The Line Representing All Combinations of Portfolio Expected Returns and Standard