n NISM Certifications
XXI NISM Series XXI-A
Medium

The Efficient Frontier represents:

Practice question from NISM XXI A for PMS - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. The set of portfolios offering the highest return for a given level of risk

    Correct answer

  2. B

    The point where risk is minimized

  3. C

    The portfolio with the maximum return regardless of risk

  4. D

    The set of portfolios with zero risk

Why this is the answer

The efficient frontier shows optimal risk-return combinations.

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