Portfolios _____ do not exist.
A) at the far right of the efficient frontier
B) at the far left of the efficient frontier
C) above the efficient frontier
D) below the efficient frontier

Question

Quizplus · Accepted Answer

Portfolios above the efficient frontier do not exist because the efficient frontier represents the set of optimal portfolios offering the highest expected return for a given level of risk. Portfolios cannot achieve higher returns for the same risk level than those on the frontier.

Portfolios _____ Do Not Exist