Which of the following statements regarding the construction of risk parity portfolios is incorrect? To create a portfolios that allocates risk equally across each asset, portfolio value must be allocated equally across each investment The marginal contribution to risk (MCR) is positively correlated with the weight of the asset in the base (or the initial) portfolio. Assets that are negatively correlated with the base (or initial portfolio) will generate negative weights. Risk parity allocates risk equally across each asset The marginal contribution to risk (MCR) is positively correlated with the beta of the asset