The efficient frontier
A) represents the best attainable tradeoff between risk and return.
B) provides the highest level of risk for the lowest level of return.
C) includes all feasible sets of portfolios based on risk and return characteristics.
D) is represented by the rightmost boundary of the feasible set of portfolios.

Question

Quizplus · Accepted Answer

The efficient frontier represents the best attainable tradeoff between risk and return, showing the set of optimal portfolios that offer the highest expected return for a given level of risk.

The Efficient Frontier