CFA Practice Question
Which of the following is most likely incorrect?
A. The efficient frontier gives the points of maximum expected returns for a given amount of risk.
B. The realized returns of the true market portfolio of risky assets are unobservable.
C. The efficient frontier gives the points of minimum risk for a given amount of expected return.
Explanation: The true market portfolio consists of assets like human capital that are unobservable
User Contributed Comments 1
| User | Comment |
|---|---|
| ConnerVP1 | "The realized returns of the true market portfolio of risky assets are unobservable." This statement is correct, right? The explanation makes it seem to be a true statement. So why is it considered the answer for this question which is looking for a false statement? |