An efficient set of portfolios is:
A)the dominant portion of the opportunity set.
B)only the maximum return portfolio.
C)only the minimum variance portfolio.
D)the complete opportunity set.
E)the portion of the opportunity set below the minimum variance portfolio.

Question

Quizplus · Accepted Answer

The efficient set of portfolios, also known as the efficient frontier, is the dominant portion of the opportunity set that offers the highest expected return for a given level of risk or the lowest risk for a given level of expected return.

An Efficient Set of Portfolios Is