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Inessa05 [86]
3 years ago
10

The portfolio with the lowest standard deviation for any risk premium is called the_______. A.efficient frontier portfolio B.CAL

portfolio C.global minimum variance portfolio D.optimal risky portfolio
Business
1 answer:
Kryger [21]3 years ago
7 0

Answer:

The right approach is Option C (global minimum variance portfolio).

Explanation:

  • A completely-invested portfolio with either a low uncertainty factor seems to be the GMV portfolio. This same GMV portfolio corresponds to or is situated mostly on the left end including its FI-efficient frontier.
  • Although aside from either the full-investment requirement, no restrictions are enforced, the GMV portfolio deals for analytical portrayal.

The latter options offered are not relevant to something like the scenario presented. So that is indeed the correct solution.

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