The efficient frontier of risky assets is
A)the portion of the investment opportunity set that lies above the global minimum variance portfolio.
B)the portion of the investment opportunity set that represents the highest standard deviations.
C)the portion of the investment opportunity set that includes the portfolios with the lowest standard deviation.
D)the set of portfolios that have zero standard deviation.

Question

Quizplus · Accepted Answer

Portfolios on the efficient frontier are those providing the greatest expected return for a given amount of risk.Only those portfolios above the global minimum variance portfolio meet this criterion.

The Efficient Frontier of Risky Assets Is