Which One of the Following Portfolios Cannot Lie on the Efficient

question 27

Multiple Choice

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

• 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 be determined from the information given.

---

Definitions:

Open Punctuation

A writing style for business correspondence that omits traditional punctuation marks after the salutation and the complimentary close.

Copy Notation

A notation on written correspondence indicating additional recipients who have been sent copies of the document.

Complimentary Closing

The closing remark of a business letter found two spaces below the last line of the body of the letter.

Subject Line

Optional line of two to three words that appears three lines below the inside address of a business letter.