Which of the following is not true regarding the efficient frontier considered by MNCs
A) There is exactly one point on the efficient frontier that is optimal for every MNC, regardless of its degree of risk aversion.
B) The efficient frontier for international projects will probably lie to the left of the efficient frontier for domestic projects.
C) Each point on the efficient frontier represents a portfolio of projects as opposed to an individual project.
D) A and C are false.
E) All of the above are true.

Question

Quizplus · Accepted Answer

The statement that there is exactly one point on the efficient frontier that is optimal for every MNC, regardless of its degree of risk aversion, is not necessarily true. The optimal point on the efficient frontier will depend on the specific risk preferences and constraints of each MNC.

Which of the Following Is Not True Regarding the Efficient