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Jessie Jones
on Nov 03, 2024

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Which one of the following portfolios cannot lie on the efficient frontier as described by Markowitz?  Portfolio  Expected Return  Standard Deviation  A 10%12%B5%7%C15%20%D12%25%\begin{array}{ccc}\text { Portfolio } & \text { Expected Return } & \text { Standard Deviation } \\\text { A } & 10\% & 12\% \\\mathrm{B} & 5\%& 7\% \\\mathrm{C} & 15\% & 20\% \\\mathrm{D} & 12\% & 25 \%\end{array} Portfolio  A BCD Expected Return 10%5%15%12% Standard Deviation 12%7%20%25%


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.

Efficient Frontier

A concept in modern portfolio theory representing the set of optimal portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean and is used as a measure of volatility.

Expected Return

The predicted yield or gains an investor anticipates on an investment, based on historical or statistical measures.

  • Acquire knowledge about the concept of the efficient frontier and distinguish portfolios placed on it.
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kayla higginsNov 07, 2024
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