Points above the efficient frontier have superior risk-return characteristics to those along the efficient frontier, but are not part of the feasible set.

Question

Quizplus · Accepted Answer

Points above the efficient frontier represent portfolios with higher expected returns for a given level of risk compared to portfolios on the efficient frontier. However, since they are not feasible portfolios within the given set of assets, they cannot be constructed or invested in.

Points Above the Efficient Frontier Have Superior Risk-Return Characteristics to Those