Question: Which statement best describes the efficient frontier in the context of portfolio theory? Question 1 Answer a . It represents portfolios with the highest return

Which statement best describes the efficient frontier in the context of portfolio theory?
Question 1Answer
a.
It represents portfolios with the highest return for any given level of risk.
b.
It consists only of portfolios with the lowest level of risk.
c.
It includes all possible portfolios regardless of their risk-return profile.
d.
It is the set of portfolios with the highest level of risk for a given return.

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