The Efficient Frontier of Risky Assets Is

question 32

Multiple Choice

The efficient frontier of risky assets is

• A)the portion of the investment opportunity set that lies above the global minimum variance portfolio.
• B)the portion of the investment opportunity set that represents the highest standard deviations.
• C)the portion of the investment opportunity set which includes the portfolios with the lowest standard deviation.
• D)the set of portfolios that have zero standard deviation.
• E)both A and B are true.

---

Definitions:

Statement Of Income

A financial document that summarizes a company's revenues, expenses, and profits over a specific period, typically a quarter or year.

Realized Gains

Profits earned from the sale of assets or investments when they are actually sold, as opposed to when they increase in value on paper.

Amortized Cost

The initial measurement of a financial asset or liability, adjusted for repayments of principal, accumulation of interest, and any loss in value.