Consider an investment opportunity set formed with two securities that are perfectly negatively correlated. The global minimum variance portfolio has a standard deviation that is always __________.

Consider an investment opportunity set formed with two securities that are perfectly negatively correlated.  The global minimum variance portfolio has a standard deviation that is always __________. 




A) equal to the sum of the securities standard deviations
B) equal to -1
C) equal to 0
D) greater than 0









Answer: C


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