The Efficient Frontier refers to a set of portfolios that
A) Have the highest expected return for a given level of risk.
B) Have the lowest risk for a given level of return.
C) Are dominant to all other portfolios.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

The Efficient Frontier represents a set of optimal portfolios that offer the highest expected return for a given level of risk or the lowest risk for a given level of expected return. These portfolios are considered dominant over all other portfolios because they maximize returns for a given risk level or minimize risk for a given level of expected returns.

The Efficient Frontier Refers to a Set of Portfolios That