In general, when the correlation coefficient between the returns on two securities is , the risk of a portfolio is
The weighted average of the total risk of the two individual securities.
A) equal to +1.0;equal to
B) less than +1.0;less than
C) a and b
D) none of these
Correct Answer:
Verified
Q30: The is a relative measure of variability
Q32: Arbitrage pricing theory is a model that
Q32: In order to completely eliminate the risk
Q33: Investors generally are considered to be risk
Q34: All of the following factors have their
Q37: The risk remaining after extensive diversification is
Q37: A portfolio is efficient if .
A)for a
Q38: What will happen to the Security Market
Q40: The _ correlated the returns from two
Q40: The risk-free rate of return can be
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents