Which One of the Following Portfolios Cannot Lie on the Efficient

question 40

Multiple Choice

Which one of the following portfolios cannot lie on the efficient frontier as described by Markowitz?

• A)Only portfolio W cannot lie on the efficient frontier.
• B)Only portfolio X cannot lie on the efficient frontier.
• C)Only portfolio Y cannot lie on the efficient frontier.
• D)Only portfolio Z cannot lie on the efficient frontier.

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Definitions:

Expected Price Level

This refers to the anticipation or forecast of future prices of goods and services in the economy, often influencing consumer and business decisions.

Foreign-Currency Exchange

The process of exchanging one currency for another, which involves determining the rate at which two currencies will be swapped.

Aggregate Demand

The total demand for all goods and services within a particular market or economy at various price levels, during a specified time period.

Price Level

A measure of the average prices of goods and services in an economy at a specific time, indicating the cost of living.