Which One of the Following Distinguishes a Minimum Variance Portfolio

question 85

Multiple Choice

Which one of the following distinguishes a minimum variance portfolio?

• A) lowest risk portfolio of any possible portfolio given the same securities but in differing proportions
• B) lowest risk portfolio possible given any specified expected rate of return
• C) the zero risk portfolio created by maximizing the asset allocation mix
• D) any portfolio with an expected standard deviation of 9 percent or less
• E) any portfolio created with securities that are evenly weighted in respect to the asset allocation mix

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Definitions:

Null Hypothesis

A statement or premise in statistics that implies no significant effect or relationship between variables, serving as a default position until evidence suggests otherwise.

Alternative Hypothesis

The hypothesis that contradicts the null hypothesis, typically proposing a new effect, difference, or relationship.

P-Value

The likelihood of achieving outcomes in a test that are at least as significant as those observed, under the assumption that the null hypothesis holds true.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, used as a starting point for statistical testing.