Choose the portfolio from the following set that is not on the efficient frontier.
A)A: expected return of 10 percent; standard deviation of 8 percent
B)B: expected return of 18 percent; standard deviation of 13 percent
C)C: expected return of 38 percent; standard deviation of 38 percent
D)D: expected return of 15 percent; standard deviation of 14 percent

Question

Quizplus · Accepted Answer

A portfolio is not on the efficient frontier if there is another portfolio with a higher expected return for the same or lower risk. Portfolio D has a lower expected return than B for a similar level of risk, making it inefficient.

Choose the Portfolio from the Following Set That Is Not