When considering the efficient frontier, financial managers should adhere to all of the following guidelines EXCEPT

Question

Quizplus · Accepted Answer

Financial managers should not necessarily prefer the project on the far right side of the efficient frontier just because it offers the highest return. They should aim to maximize return for a given level of risk or minimize risk for a given level of return, depending on their preferences and goals. Selecting the projects on the leftmost and uppermost sector of the possible projects is a good guideline because these projects offer the highest return for a given level of risk.

When Considering the Efficient Frontier, Financial Managers Should Adhere to All