The efficient frontier is constructed by:
A)Maximizing expected portfolio return while holding portfolio variance constant.
B)Minimizing portfolio variance while holding expected portfolio return constant.
C)Either A or B
D)None of the above will generate an efficient frontier.

Question

Quizplus · Accepted Answer

The efficient frontier is constructed by either maximizing expected portfolio return while holding portfolio variance constant or minimizing portfolio variance while holding expected portfolio return constant. Both methods result in the same efficient frontier.

The Efficient Frontier Is Constructed By