Which One of the Following Portfolios Cannot Lie on the Efficient

question 76

Multiple Choice

Which one of the following portfolios cannot lie on the efficient frontier as described by Markowitz? $$\begin{array} { c c c } \underline{\text { Portfolio } }&\underline{ \text { Expected Return} } &\underline{ \text { Standard Deviation }} \\ \text { A } & 10 \% & 12 \% \\\text { B } & 5 \% & 7 \% \\\text { C } & 15 \% & 20 \% \\\text { D } & 12 \% & 25 \%\end{array}$$

• A)Only portfolio A cannot lie on the efficient frontier.
• B)Only portfolio B cannot lie on the efficient frontier.
• C)Only portfolio C cannot lie on the efficient frontier.
• D)Only portfolio D cannot lie on the efficient frontier.
• E)Cannot tell from the information given.

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Definitions:

Total Revenue

The total receipts from sales of a given quantity of goods or services.

Sold Units

The number of individual items or products sold by a company within a specified time period.

Price Discrimination

This refers to the practice of selling nearly the same items or services at varying prices in distinct markets by a singular provider.

Concession Stands

Retail outlets located at entertainment venues, sporting events, or fairs, where snacks, drinks, and other items are sold.