Which of the Following Assets Cannot Lie on the Markowitz

question 12

Multiple Choice

Which of the following assets cannot lie on the Markowitz efficient frontier?

• A) Expected return = 10 percent; Standard deviation = 38 percent
• B) Expected return = 12 percent; Standard deviation = 49 percent
• C) Expected return = 9 percent; Standard deviation = 41 percent
• D) Expected return = 14 percent; Standard deviation = 51 percent
• E) All of the assets could lie on the Markowitz efficient frontier.

---

Definitions:

Intermediaries

Individuals or organizations that act as middlemen in a transaction between two parties, facilitating interaction or negotiation between them.

Disintermediation

The removal of intermediaries from a supply chain or business process, often through direct transactions between producers and consumers facilitated by digital technologies.

Porter's Five Forces

A framework for analyzing the competitive forces within an industry, including competition, potential entrants, substitute products, bargaining power of suppliers, and bargaining power of customers.

WAN

A Wide Area Network is a telecom network that spans a vast geographic area, mainly designed for connecting computers.