Which of the following represents a portfolio that does not lie on the efficient frontier (i.e. which
portfolio is clearly dominated by another)?
Answer
a.
Portfolio B: expected return of 18% and standard deviation of 13%
b.
Portfolio A: expected return of 10% and standard deviation of 8%
c.
Portfolio C: expected return of 38% and standard deviation of 38%
d.
Portfolio D: expected return of 15% and standard deviation of 14%