Examveda
Examveda

Negative minimum risk portfolio of any security shows that market security sold

A. less than original price

B. greater than original price

C. equal to original price

D. equal to sum of stocks

Answer: Option A

Solution(By Examveda Team)

Negative minimum risk portfolio of any security shows that market security sold less than original price. Assets that have a negative correlation with each other produce negative portfolio variance. Variance is one measure of the volatility of an asset. An asset with higher variance also carries greater risk.

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