Portfolios exhibiting the smallest amount of risk for a given level of expected return or exhibiting the highest expected return for a given level of risk are (is):
A) inefficient portfolios.
B) unobtainable portfolios.
C) the global minimum variance portfolio.
D) efficient portfolios.

Question

Quizplus · Accepted Answer

Efficient portfolios are those that provide the highest expected return for a given level of risk or the lowest risk for a given level of expected return, according to modern portfolio theory. This concept is fundamental to the efficient frontier, which represents the set of optimal portfolios that offer the highest expected return for a given level of risk.

Portfolios Exhibiting the Smallest Amount of Risk for a Given