The efficient frontier represents a set of portfolios that(a) maximize expected return for a given level of risk. (b) minimize expected return for a given level of risk. (c) maximize risk for a given level of return. (d) none of the options.
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Ответ:
The correct answer is choice a.
Explanation: The efficient frontier represents a set of portfolios that maximize expected return for a given level of risk. There is no point on the efficient frontier that is better than another. Investors expect a level of return that is in direct relation to the risk of the investment. As the risk increases the return should as well.
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