Consider the Following Statements When Answering This Question; I

question 36

Multiple Choice

Consider the following statements when answering this question; I. The variance of the returns of an investor's portfolio can be reduced by selling assets from the portfolio, and investing the proceeds in other assets where returns are positively correlated with the portfolio's remaining assets.
II) The value of complete information is always positive.

• A) I and II are true.
• B) I is true and II is false.
• C) I is false and II is true.
• D) I and II are false.

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Definitions:

Risk

In law and business, risk refers to the exposure to potential loss or damage arising from various factors like legal liabilities or financial transactions.

Offeror

An offeror is a person or party who presents a conditional proposal to enter into an agreement with someone, known as the offeree, which becomes legally enforceable if accepted by the offeree.

Accommodation

Adjustments or modifications provided to employees or customers to enable participation or access, often relating to disability.

Nonconforming Goods

Products delivered under a contract that fail to meet the specifications or quality standards specified.