Which one of the following portfolios cannot lie on the efficient frontier as described by Markowitz? $$\begin{array} { c r r }
\text { Portfolio } & \begin{array} { r }
\text { Expected } \
\text { Return }
\end{array} & \begin{array} { r }
\text { Standard } \
\text { Deviation }
\end{array} \
\text { W } & 9 \% & 21 \% \
\text { X } & 5 \% & 7 \% \
\text { Y } & 15 \% & 36 \% \
\text { Z } & 12 \% & 15 \% \
\hline
\end{array}$$

Question

Which one of the following portfolios cannot lie on the efficient frontier as described by Markowitz? $$\begin{array} { c r r } 
\text { Portfolio } & \begin{array} { r } 
\text { Expected } \
\text { Return }
\end{array} & \begin{array} { r } 
\text { Standard } \
\text { Deviation }
\end{array} \
\text { W } & 9 \% & 21 \% \
\text { X } & 5 \% & 7 \% \
\text { Y } & 15 \% & 36 \% \
\text { Z } & 12 \% & 15 \% \
\hline
\end{array}$$

Quizplus · Accepted Answer

Portfolio W has the highest standard deviation for a given expected return, so it cannot lie on the efficient frontier.

Which One of the Following Portfolios Cannot Lie on the Efficient