The portfolio with the lowest standard deviation for any risk premium is called the_______.
A) CAL portfolio
B) efficient frontier portfolio
C) global minimum variance portfolio
D) optimal risky portfolio

Question

Quizplus · Accepted Answer

The global minimum variance portfolio is the portfolio with the lowest standard deviation for any given level of expected return or risk premium. It represents the portfolio with the highest diversification and the lowest overall risk. The other choices, while related to portfolio theory, do not specifically refer to the portfolio with the lowest standard deviation.

The Portfolio with the Lowest Standard Deviation for Any Risk