Given a portfolio of stocks, the envelope curve containing the set of best possible combinations is known as the
A) efficient portfolio.
B) utility curve.
C) efficient frontier.
D) last frontier.
E) capital asset pricing model.

Question

Quizplus · Accepted Answer

The term used to describe the envelope curve containing the set of best possible combinations is the efficient frontier. It represents the combination of stocks that provide the highest expected return for a given level of risk. Therefore, the best choice is C, efficient frontier.

Given a Portfolio of Stocks, the Envelope Curve Containing the Set