Only the end points of the efficient frontier are dominated portfolios.

Question

Quizplus · Accepted Answer

The efficient frontier consists of portfolios that offer the highest expected return for a given level of risk or the lowest risk for a given level of expected return. Portfolios on the efficient frontier are not dominated by others in terms of risk-return trade-off. Only portfolios below the efficient frontier are considered dominated because they offer lower returns for the same level of risk or higher risk for the same level of returns as those on the frontier.

Only the End Points of the Efficient Frontier Are Dominated