The efficient frontier represents a set of portfolios that
A) maximize expected return for a given level of risk.
B) minimize expected return for a given level of risk.
C) maximize risk for a given level of return.
D) None of the options.

Question

Quizplus · Accepted Answer

The efficient frontier shows the set of portfolios that give the highest expected return for a given level of risk or the lowest risk for a given level of return. Therefore, the correct choice is A.

The Efficient Frontier Represents a Set of Portfolios That