Question: We construct four portfolios by investing different weights in two stocks. The expected return and STD of these portfolios are given below. Portfolio Expected Return

We construct four portfolios by investing different weights in two stocks. The expected return and STD of these portfolios are given below.

Portfolio Expected Return Standard Deviation

W 8.25% 20%

X 8.75% 15%

Y 8.5% 20%

Z 9% 15%

Which of the following portfolios is on the efficient frontier?

a. Only portfolio W is on the efficient frontier. b. Only portfolio X is on the efficient frontier. c. Only portfolio Y is on the efficient frontier.

d. Only portfolio Z is on the efficient frontier.

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