Which Three of the Following Statements Are Correct

question 26

Multiple Choice

Which three of the following statements are correct?

• A) For a portfolio to be described as efficient there must be no other combinations of proportions of the underlying investments which provide a higher return for the same risk.
• B) Portfolio returns are a weighted average of the expected returns on the individual investments but portfolio standard deviation is more than the weighted average risk of the individual investments.
• C) Both covariance and the correlation coefficient measure the degree to which returns move together.
• D) The degree of risk reduction from diversification depends on the extent of statistical interdependence between the returns of the different investments.

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Definitions:

Seminal Vesicle

One of two glands in males that produce fluid that forms part of semen and nourishes sperm.

Enlarged Prostate

A condition commonly seen in older men where the prostate gland increases in size, potentially causing urinary issues.

Urination

The release of urine from the urinary bladder through the urethra to the outside of the body.

Prostatic Secretions

Fluid produced by the prostate gland that is one component of semen, providing nutrients for sperm and lubrication during ejaculation.