Which One of the Following Portfolios Cannot Lie on the Efficient

question 58

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 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 be determined from the information given.

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Definitions:

Cognitive Perspective

A psychological approach that focuses on how mental processes such as perception, memory, and problem-solving work and how they influence behavior.

Behavioral Perspective

An approach to psychology that focuses on observable behaviors and the ways in which they are learned.

Observable Responses

Measurable actions or reactions of an organism in response to external or internal stimuli.

Conscious Processes

Mental activities of which an individual is aware, involving perception, thinking, and remembering.