The condition for optimal portfolio choice can be represented by:

Question

Quizplus · Accepted Answer

The optimal portfolio choice can be represented by the point where the highest possible level of return is achieved with the minimum possible level of risk. This point is known as the Efficient Frontier, which is represented by a curved line on a graph where the x-axis denotes risk (standard deviation of returns) and the y-axis denotes return. Option B represents a graph that includes the Efficient Frontier, making it the best choice.

The Condition for Optimal Portfolio Choice Can Be Represented By