On a standard expected return vs.standard deviation graph investors will prefer portfolios that lie to the _____________ of the current investment opportunity set.
A) left and above
B) left and below
C) right and above
D) right and below

Question

Quizplus · Accepted Answer

Investors prefer portfolios that offer higher returns for a given level of risk, or lower risk for a given level of return. Portfolios to the left and above the current investment opportunity set represent more efficient portfolios with either higher returns for the same risk or lower risk for the same return.

On a Standard Expected Return Vs