Richard Hendricks just received a new round of funding for his startup and is considering investment alternatives to save back some of his salary in case his company fails. Richard dropped out of college, so he asks you to help him evaluate the following portfolios. Portfolio I N C U B A T R Expected Return (%) 7 9 10 13 14 15 15 17 Volatility (%) 20 18 22 26 26 29 32 38

You tell Richard that his decision will be easier if he can identify the inefficient portfolios.