Q747
Positive minimum risk portfolio of any security shows that market security sold
A.
equal to original price
B.
equal to sum of stocks
C.
less than original price
D.
greater than original price
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Positive minimum risk portfolio of any security shows that market security sold greater than original price. A minimum variance portfolio indicates a well-diversified portfolio that consists of individually risky assets, which are hedged when traded together, resulting in the lowest possible risk for the rate of expected return.