minimum-variance portfolio


Portfolio of stocks with the lowest volatilities (betas) and, therefore, lowest sensitivities to risk. It makes maximum use of diversification to achieve the resultant risk level that is lower than the individual risk level of each of the stock it contains.

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You may want to try and take on a minimum-variance portfolio if you are not looking to take on any big risks.

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The minimum-variance portfolio was a perfect choice for Joyce as she was entering her 60s and needed an investment upon which she could rely.

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When I am close to retirement I plan to change to a minimum-variance portfolio as to protect my assets so I have a good income in my golden years.

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