You combine a set of assets using different weights such that you produce the following results. Which one of these portfolios CANNOT be a Markowitz efficient portfolio?
A) A
B) B
C) C
D) D
E) E

Question

You combine a set of assets using different weights such that you produce the following results.  Which one of these portfolios CANNOT be a Markowitz efficient portfolio?
A) A 
B) B 
C) C 
D) D 
E) E

Quizplus · Accepted Answer

A portfolio is said to be Markowitz efficient if there is no other portfolio that offers a higher return for the same level of risk or offers a lower level of risk for the same level of return. All the given portfolios except E satisfy the criteria of a Markowitz efficient portfolio. The portfolio E offers the lowest level of return for a given level of risk compared to the other portfolios, hence it cannot be a Markowitz efficient portfolio.

You Combine a Set of Assets Using Different Weights Such