Which of the following statements best describes an investment that is not on the efficient frontier?

- portfolio with lower return for same risk
- portfolio with lower risk for same return

solution: 2

how? won’t it be option 1?

Eg:

Portfolio Return Risk

A 8% 12%

B 7% 12%

C 15% 20%

So the portfolio B will not lie on efficient frontier as lower return for same risk.