A portfolio that plots below the minimum variance portfolio is __________.
A) dominant
B) inefficient
C) correlated
D) optimal
E) redundant

Question

Quizplus · Accepted Answer

A portfolio that plots below the minimum variance portfolio is inefficient because it offers a lower expected return for the same level of risk as the minimum variance portfolio. An investor seeking to optimize his or her portfolio would not choose an inefficient portfolio.

A Portfolio That Plots Below the Minimum Variance Portfolio Is