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Which of the risky portfolios is not on efficient frontier

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Question: Consider again portfolio C from Problem 2. Assuming (very reasonably) that portfolios A and B are not perfectly positively correlated, will portfolio C's volatility be greater or less than halfway between A's and B's volatility (that is, 7.5%)?

Problem 2: Consider again portfolios A and B from Problem 1. What would be the expected return to portfolio C that consists of a 50/50 weighting of A and B?

Problem 1: Consider two portfolios. Portfolio A has an expected return of 10% and volatility of 8%. Portfolio B has an expected return of 9% and volatility of 7%. The interest rate on a risk-free investment is 5%. Which of the two risky portfolios is not on the efficient frontier?

Reference no: EM131735563

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