Portfolios Falling to the Left of the Efficient Frontier

question 13

Multiple Choice

Portfolios falling to the left of the efficient frontier

• A)have too much risk for the expected return.
• B)would be desirable if only they were possible.
• C)do not use all of the assets in the portfolio.
• D)fall within the set of feasible portfolios.

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Definitions:

Sketch Graph

The act of drawing a rough representation of a graph to show its general shape and key points.

Equation

An assertion in math that two expressions are equivalent.

Square

A geometric figure with four equal sides and four right angles or the operation of raising a number to the power of two.

Depreciated Value

The reduced worth of an asset after accounting for depreciation, usually over its useful life.