Where does the minimum variance portfolio lie in respect to the investment opportunity set?
A)lowest point
B)highest point
C)most leftward point
D)most rightward point
E)exact center

Question

Quizplus · Accepted Answer

The minimum variance portfolio lies at the most leftward point on the efficient frontier of the investment opportunity set. This point represents the portfolio with the lowest level of risk (variance).

Where Does the Minimum Variance Portfolio Lie in Respect to the Investment