Which of the following statements is FALSE?
A)All portfolios on the efficient frontier are attainable.
B)Every portfolio below the efficient portfolio can be improved.
C)All portfolios on the efficient frontier have the same variance to return ratio.
D)The minimum variance portfolio represents the lowest level of variance that an efficient portfolio can have.

Question

Quizplus · Accepted Answer

Portfolios on the efficient frontier are optimized for the highest return at a given level of risk or the lowest risk for a given level of return, but they do not all have the same variance to return ratio. This ratio varies along the frontier, reflecting different levels of risk and return.

Which of the Following Statements Is FALSE