The Efficient Frontier refers to a set of portfolios that
A) Have the highest expected return for a given level of risk.
B) Have the lowest risk for a given level of return.
C) Are dominant to all other portfolios.
D) a, b, and c above are correct.
E) None of the answers above are correct.

Question

Quizplus · Accepted Answer

The Efficient Frontier represents portfolios that offer the highest expected return for a given level of risk and the lowest risk for a given level of return, making them dominant to other portfolios not on the frontier.

The Efficient Frontier Refers to a Set of Portfolios That