The Portfolio Expected Return of Two Investments

question 148

Multiple Choice

The portfolio expected return of two investments

• A)will be higher when the covariance is zero.
• B)will be higher when the covariance is negative.
• C)will be higher when the covariance is positive.
• D)does not depend on the covariance.

---

Definitions:

Future Traumas

Anticipated or potential traumatic events that could have adverse emotional, psychological, or physical impacts on an individual.

Neurotic Anxiety

A level of anxiety stemming from unconscious conflicts that threaten to surface, often resulting in psychological distress.

Performance Anxiety

A feeling of nervousness or fear about one's ability to perform well in a specific situation, often in relation to public speaking, performing arts, or sports.

Reality Anxiety

The fear or apprehension caused by facing real, immediate threats in one’s environment, distinct from neurotic or moral anxiety.