If the return increases as more global investments with low correlation are added to the market portfolio,the efficient frontier moves
A) Up and right.
B) Up and left.
C) Down and right.
D) Down and left.
E) Up only.

Question

Quizplus · Accepted Answer

Adding global investments with low correlation to the market portfolio increases diversification, which can lead to higher returns for a given level of risk. This shifts the efficient frontier up and to the left, indicating higher returns for the same or lower levels of risk.

If the Return Increases as More Global Investments with Low