1. less than original price
  2. greater than original price
  3. equal to original price
  4. equal to sum of stocks
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1 Answers

Answer: Option 1

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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