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nism-series-xa-global-minimum-variance-portfolio-efficient-frontier[ INVESTMENT ADVISER (LEVEL 1) ]

On the Markowitz Efficient Frontier curve plotting Expected Return against Standard Deviation, where is the Global Minimum Variance (GMV) portfolio located?

[ A ]At the topmost point on the far right of the curve
[ B ]At the leftmost tip (vertex) of the frontier representing the minimum possible risk among all risky portfolios[ CORRECT ]
[ C ]At the exact midpoint of the linear Capital Market Line
[ D ]At the origin (0% return, 0% standard deviation)
Takeaway

The Global Minimum Variance portfolio sits at the leftmost tip (vertex) of the Markowitz efficient frontier — the single combination of risky assets that produces the lowest possible standard deviation among all achievable portfolios.

Derivation
The Markowitz 'bullet' curve plots every achievable risky-asset combination by expected return and standard deviation; as you trace along the curve from either end, the GMV portfolio is the unique point where risk (standard deviation) is minimized — moving in either direction from that point increases risk, though only the upper half of the curve above the GMV point (where return also increases) qualifies as the 'efficient frontier', since the lower half offers more risk for less return and is therefore dominated. Recognizing that the GMV sits at the frontier's leftmost vertex — and that it is the boundary separating efficient from inefficient portfolios on the curve — is the specific geometric concept the exam tests.
Why the others fail
A — At the topmost point on the far right of the curve
The topmost-right point of the curve represents the maximum-return (often single highest-return asset) portfolio, the opposite extreme from the minimum-risk Global Minimum Variance portfolio.
C — At the exact midpoint of the linear Capital Market Line
The midpoint of the straight Capital Market Line is a different construct entirely — the CML combines a risk-free asset with the tangency portfolio.
D — At the origin (0% return, 0% standard deviation)
The origin (0% return, 0% risk) represents the risk-free asset position, not a risky-asset portfolio; the GMV portfolio, composed entirely of risky assets, cannot have zero standard deviation.