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
Correct Answer: less than original price
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.