The measure of risk in a Markowitz efficient frontier is:
A) specific risk.
B) standard deviation of returns.
C) reinvestment risk.
D) beta.
E) none of these.

Question

Quizplus · Accepted Answer

The measure of risk in a Markowitz efficient frontier is the standard deviation of returns. This is because the efficient frontier represents the set of portfolios that offer the highest expected return for every level of risk, and the level of risk is commonly represented by the standard deviation of returns.

The Measure of Risk in a Markowitz Efficient Frontier Is