Given a portfolio of stocks,the envelope curve containing the set of best possible combinations is known as the
A) Efficient portfolio.
B) Utility curve.
C) Efficient frontier.
D) Last frontier.
E) Capital asset pricing model.

Question

Quizplus · Accepted Answer

The envelope curve containing the set of best possible combinations is known as the efficient frontier. This means that this portfolio has the highest possible expected return for a given level of risk or the lowest possible risk for a given level of expected return. The other options, including efficient portfolio and capital asset pricing model, are related concepts but do not specifically refer to the curve containing the best possible combinations.

Given a Portfolio of Stocks,the Envelope Curve Containing the Set