What happens to portfolios that cannot be dominated?

A) They lie on the efficient frontier.
B) They are minimum risk portfolios.
C) They have low correlations.
D) They have maximum expected returns.

Efficient Frontier

The efficient frontier is a concept in modern portfolio theory representing those portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

Minimum Risk Portfolios

Investment strategies that aim to minimize the overall risk of a portfolio through diversification and asset allocation.

Expected Returns

The anticipated profit or loss from an investment over a specific period.