The "Efficient Frontier" Indicates

question 39

Multiple Choice

The "efficient frontier" indicates

• A) alternatives with neutral combinations of risk and return.
• B) alternatives with the highest returns.
• C) alternatives with the best combination of risk and return.
• D) alternatives with no risk.

---

Definitions:

y-Intercept

The point where a line crosses the y-axis in a graph, representing the value of the dependent variable when all independent variables are zero.

Slope

In a linear equation, the coefficient that represents the rate of change of the dependent variable with respect to the independent variable.

Regression Slope Coefficient

A parameter in regression analysis that represents the change in the dependent variable for a one-unit change in an independent variable.

Simple Linear Regression

A statistical method to model the relationship between two variables by fitting a linear equation to observed data.