QUESTION 17 1 points Save Answer Which of the following portfolios cannot lie on

Question

QUESTION 17 1 points Save Answer Which of the following portfolios cannot lie on the efficient frontier described by Markowitz? Portfolio W. Expected Return = 9%, Standard Deviation = 21% Portfolio X, Expected Return = 5%, Standard Deviation = 7010 Portfolio Y, Expected Return = 15%, Standard Deviation = 36% Portfolio Z. Expected Return = 12%, Standard Deviation = 15% O a. Only portfolio W cannot lie on the efficient frontier O b Only portfolio X cannot lie on the efficient frontier 0 c. Only portfolio Y cannot lie on the efficient frontier O d. Only portfolio Z cannot lie on the efficient frontier O e. Cannot be determined from the information given

Explanation / Answer

option a.Only portfolio W cannot lie on the efficient frontier

When plotting the above portfolios, only W lies below the efficient frontier as described byMarkowitz. It has a higher standard deviation thanZ with a lower expected return.

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