The efficient frontier
A) is represented by the rightmost boundary of the feasible set of portfolios.
B) represents the best attainable tradeoff between risk and return.
C) includes all feasible sets of portfolios based on risk and return characteristics.
D) provides the highest level of risk for the lowest level of return.

Question

Quizplus · Accepted Answer

The efficient frontier 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, thus representing the best attainable tradeoff between risk and return.

The Efficient Frontier