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 logical investor would choose to hold.
D)all of the above

Question

Quizplus · Accepted Answer

The efficient frontier represents portfolios that offer the highest expected return for a given 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 the optimal portfolios that a rational investor would choose.

The Efficient Frontier of the Domestic Portfolio Opportunity Set