The efficient frontier is always along the left-most portion of the risk-return tradeoff diagram.

Question

Quizplus · Accepted Answer

The efficient frontier is the line that represents the optimal portfolio combinations of risk and return. It is not necessarily always along the left-most portion of the risk-return tradeoff diagram, as the positioning of the frontier is dependent on the specific set of assets being considered and the investors' specific preferences and constraints.

The Efficient Frontier Is Always Along the Left-Most Portion of the Risk-Return