The set of portfolios meeting the condition of maximum expected returns for varying levels of risk and minimum risk for varying levels of expected returns is known as the
A) market portfolio
B) efficient set
C) market frontier
D) feasible set

Question

Quizplus · Accepted Answer

The set of portfolios meeting the condition of maximum expected returns for varying levels of risk and minimum risk for varying levels of expected returns is known as the efficient set. This set is also known as the efficient frontier or optimal portfolio set. It represents the set of portfolios that offer the highest expected return for a given level of risk or the lowest risk for a given level of expected return. Therefore, option B, efficient set, is the best choice.

The Set of Portfolios Meeting the Condition of Maximum Expected