Which of the following nine portfolios is NOT efficient (i.e., not on the efficient frontier)? Portfolio % in asset A P1 P2 P3 P4 P5 P6 P7 10% 20% 30% 40% 50% 60% 70% % in asset B 90% 80% 70% 60% 50% 40% 30% E(rp) 7.6% 7.2% 6.8% 6.4% 6.0% 5.6% 5.2% ap 14.1% 12.2% 10.4% 8.7% 7.0% 5.6% 4.5%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Which of the following nine portfolios is NOT efficient (i.e., not on the efficient frontier)?
Portfolio
% in asset A
10%
20%
30%
40%
50%
60%
70%
80%
90%
OA Portfolios P1-P3
OB Portfolios P4-P6
OC Portfolio P5
OD. Portfolio P1
OE Portfolio P7
OF. Portfolios P7-P9
G.Portfolio P9
OH. Portfolio P3
P1
P2
P3
P4
P5
P6
P7
P8
P9
% in asset B
90%
80%
70%
60%
50%
40%
30%
20%
10%
E(rp)
7.6%
7.2%
6.8%
6.4%
6.0%
5.6%
5.2%
4.8%
4.4%
op
14.1%
12.2%
10.4%
8.7%
7.0%
5.6%
4.5%
4.2%
4.8%
Transcribed Image Text:Which of the following nine portfolios is NOT efficient (i.e., not on the efficient frontier)? Portfolio % in asset A 10% 20% 30% 40% 50% 60% 70% 80% 90% OA Portfolios P1-P3 OB Portfolios P4-P6 OC Portfolio P5 OD. Portfolio P1 OE Portfolio P7 OF. Portfolios P7-P9 G.Portfolio P9 OH. Portfolio P3 P1 P2 P3 P4 P5 P6 P7 P8 P9 % in asset B 90% 80% 70% 60% 50% 40% 30% 20% 10% E(rp) 7.6% 7.2% 6.8% 6.4% 6.0% 5.6% 5.2% 4.8% 4.4% op 14.1% 12.2% 10.4% 8.7% 7.0% 5.6% 4.5% 4.2% 4.8%
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