If the portfolio variance were equal to zero, the amount of risk would be
A)unity.
B)a positive number greater than 1.
C)negative always.
D)zero.

Question

Quizplus · Accepted Answer

If the portfolio variance were equal to zero, it would mean that there is no variation in the returns of the assets in the portfolio. This would imply that there is no risk involved in holding that portfolio, and hence the amount of risk would be zero.

If the Portfolio Variance Were Equal to Zero, the Amount