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You have average returns, variances, and the covariance for two assets. You create a spreadsheet to compute, for different allocations of the two assets, portfolio

You have average returns, variances, and the covariance for two assets. You create a spreadsheet to compute, for different allocations of the two assets, portfolio returns in column A and portfolio standard deviations in column B. You create a graph, using the data in columns A and B and the graph looks like a tilted J. What would cause this?

  • A. The portfolios are all inefficient.
  • B. The portfolios are all efficient.
  • C. The axis numbers need to be adjusted so the graphs origin is not (0, 0).
  • D. The data columns need to be switched.

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