What concept is exhibited by the following graph?
A) Capital Asset Pricing Model (CAP
B) Eﬃcient Frontier
C) Positive correlation.
D) Negative correlation
E) No correlation

Question

What concept is exhibited by the following graph? 
A) Capital Asset Pricing Model (CAP
B) Eﬃcient Frontier 
C) Positive correlation. 
D) Negative correlation 
E) No correlation

Quizplus · Accepted Answer

The graph exhibits the concept of Efficient Frontier, which is the set of optimal portfolios that offers the highest expected return for a defined level of risk or the lowest risk for a given level of expected return. The curve represents various combinations of assets that have the highest return for a certain level of risk.

What Concept Is Exhibited by the Following Graph