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 be determined from the information given.
D. Only portfolio D cannot lie on the efficient frontier.
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.
You might also like to view...
Which is a trait of excessive control?
A. trying to recoup “sunk costs” B. putting agreement ahead of good problem-solving C. combines high power with low visibility D. continuing in a failed course of action
Dealer brands are brands created by producers.
Answer the following statement true (T) or false (F)
Discuss the elements of a small group.
What will be an ideal response?
QAM stands for: quadrature amplitude modulation
Indicate whether the statement is true or false