1. 

   rlsrachaellouisesmith Ton up Member

   In (iv) of the model solutions it states that the portfolios are inefficient. Is this because the return for ABC is lower than the portfolio, whilst the standard deviation is higher? If not, what allows us to identify that these are inefficient?
   
   Thank you

    

   rlsrachaellouisesmith, Sep 23, 2021

   #1
2. 

   Steve Hales ActEd Tutor Staff Member

   Yes, a lower expected return for a higher level of risk makes for an inefficient portfolio.

    

   Steve Hales, Sep 24, 2021

   #2

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