Which One of the Following Portfolios Cannot Lie on the Efficient

question 28

Multiple Choice

Which one of the following portfolios cannot lie on the efficient frontier as described by Markowitz? $$\begin{array}{l}\begin{array} { r r r } \text { Portfolio }&\text{Expected Return }& \text { Standard Deviation } \\\hline\mathrm { W } & 9 \% & 21 \% \\\mathrm { X } & 5 \% & 7 \% \\\mathrm { Y } & 15 \% & 36 \% \\\mathrm { Z } & 12 \% & 15 \%\end{array}\end{array}$$

• 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.
• E) Cannot tell from the information given.

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