Relative to the efficient frontier of risky portfolios, it is impossible to hold a portfolio that is located ________ the efficient frontier.
A)to the left of
B)to the right of
C)on
D)to the right or left of

Question

Quizplus · Accepted Answer

A portfolio cannot be to the left of the efficient frontier because that would imply a higher return for the same level of risk, which is not possible according to the principles of modern portfolio theory.

Relative to the Efficient Frontier of Risky Portfolios, It Is