The efficient frontier portfolios are
A) portfolios that risk adverse investors will select.
B) portfolios where all the market risk is diversified away.
C) portfolios where the correlation among assets is 0.0.
D) portfolios that dominate all others.

Question

Quizplus · Accepted Answer

The efficient frontier represents portfolios that offer the highest expected return for a given level of risk, thus dominating other portfolios that do not offer as favorable a risk-return trade-off.

The Efficient Frontier Portfolios Are