StateProbabilityReturn on Stock AReturn on Stock B10.1010%8%20.2013%7%30.2012%6%40.3014%9%50.2015%8%Which of the following portfolio(s) is (are) on the efficient frontier?
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State
Probability
Return on Stock A
Return on Stock B
1
0.10
10%
8%
2
0.20
13%
7%
3
0.20
12%
6%
4
0.30
14%
9%
5
0.20
15%
8%
Which of the following portfolio(s) is (are) on the efficient frontier?
The portfolio with 20 percent in A and 80 percent in B, and the portfolio with 15 percent in A and 85 percent in B are both on the efficient frontier.
The portfolio with 20 percent in A and 80 percent in B.
The portfolio with 15 percent in A and 85 percent in B.
The portfolio with 26 percent in A and 74 percent in B.
The portfolio with 10 percent in A and 90 percent in B