- CFA Exams
- CFA Level I Exam
- Study Session 18. Portfolio Management (1)
- Reading 52. Portfolio Risk and Return: Part I
- Subject 6. Efficient Frontier

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**CFA Practice Question**

The efficient frontier represents the set of portfolios that has the ______

B. maximum rate of return for every given level of risk, or the maximum risk for every level of return.

C. minimum rate of return for every given level of risk, or the minimum risk for every level of return.

A. maximum rate of return for every given level of risk, or the minimum risk for every level of return.

B. maximum rate of return for every given level of risk, or the maximum risk for every level of return.

C. minimum rate of return for every given level of risk, or the minimum risk for every level of return.

Correct Answer: A

The efficient frontier represents the set of portfolios that has the maximum rate of return for every given level of risk, or the minimum risk for every level of return.

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