Vidyalelo
Commerce · Q704

Financial Management

Graduate and Post Graduate · Commerce · question 704

Q704

An efficient set of portfolios represented through graph is classified as an

A.
attained frontier
B.
efficient frontier
Answer
C.
inefficient frontier
D.
unattained frontier

Answer: Option B

Solution

Answer: Option B
Solution:
An efficient set of portfolios represented through graph is classified as an efficient frontier. The efficient frontier is the set of optimal portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.