The efficient frontier of the domestic portfolio opportunity set
A)runs along the extreme left edge of the opportunity set.
B)represents optimal portfolios of securities that represent minimum risk for a given level of expected portfolio return.
C)contains the portfolio of risky securities that the rational investor would choose to hold.
D)all of the above.

Question

Quizplus · Accepted Answer

The efficient frontier represents the set of optimal portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return. It runs along the extreme left edge of the opportunity set and contains portfolios that rational investors would choose.

The Efficient Frontier of the Domestic Portfolio Opportunity Set