Consider that your company is risk-averse, on which side of the efficient frontier curve should the undertaken portfolios lie?

Portfolio managers tend to use the efficient frontier analysis as a modeling approach that

gives decision makers the analytical tool to optimize portfolios given resource constraints such as risk.

Consider that your company is risk-averse, on which side of the efficient frontier curve should the undertaken portfolios lie?
A . Below the curve
B . Along the lower bounds of the curve
C . Above the curve
D . Along the upper bounds of the curve

View Answer

Answer: B