The efficient frontier in project management is the set of portfolio options that offer:
A)a minimum return for a minimum risk.
B)a minimum return for a maximum risk.
C)a maximum return for a minimum risk.
D)a maximum return for a maximum risk.

Question

Quizplus · Accepted Answer

The efficient frontier is all about finding a balance between risk and return. Therefore, when it comes to the options available in project management, the best choice would be the one that offers a maximum return for a minimum risk. This ensures that you are getting the most reward possible for the least amount of risk taken on. The other choices (A, B, and D) are not ideal because they either prioritize minimizing risk over maximizing returns or vice versa, leading to a suboptimal portfolio.

The Efficient Frontier in Project Management Is the Set of Portfolio