The efficient frontier is always along the left-most portion of the risk-return trade-off diagram in which risk is measured on the X-axis and return is measured on the Y-axis.

Question

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The efficient frontier represents the combination of portfolios that offer the highest expected return for a given level of risk, or the lowest level of risk for a given expected return. As such, it is always along the left-most portion of the risk-return trade-off diagram. Risk is traditionally measured on the X-axis and return on the Y-axis, but the labels could be reversed without changing the nature of the efficient frontier.

The Efficient Frontier Is Always Along the Left-Most Portion of the Risk-Return