1.a. X is a portfolio on the Capital Market Line (CML). Y is a portfolio on the efficient frontier. Which of the following CANNOT be true?

		X has a lower expected return than Y
		X has a higher standard deviation than Y
		X has a lower standard deviation than Y
		X has a higher Sharpe Ratio than Y
		None of the above

b.

Which of the following portfolios will NOT be on the efficient frontier? The risk free rate is 5%.

Portfolio	Expected returns	Expected standard deviation
A	7%	12%
B	8%	15%
C	11%	25%
D	10%	28%