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Both the efficient frontier and beta are important aspects of MPT.
A) True
B) False

User Intelis
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1 Answer

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Final answer:

The statement is true because the efficient frontier represents optimal portfolios and beta measures systematic risk, both key elements of Modern Portfolio Theory.

Step-by-step explanation:

The question pertains to Modern Portfolio Theory (MPT), which indeed considers both the efficient frontier and beta as significant components. The efficient frontier represents a set of portfolios that offer the highest expected return for a given level of risk. On the other hand, beta measures the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. The statement that 'Both the efficient frontier and beta are important aspects of MPT' is therefore true (A).

User SnowBEE
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