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

Question

Quizplus · Accepted Answer

The efficient set of portfolios, also known as the efficient frontier, consists of the dominant portion of the opportunity set. This means it includes all portfolios that offer 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 Comprised Of