Which one of the following portfolios cannot lie on the efficient frontier as described by Markowitz
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 tell from the information given.

Question

Which one of the following portfolios cannot lie on the efficient frontier as described by Markowitz 
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 tell from the information given.

Quizplus · Accepted Answer

When plotting the above portfolios, only D lies below the efficient frontier as described by Markowitz.It has a higher standard deviation than C with a lower expected return.

Which One of the Following Portfolios Cannot Lie on the Efficient