The Global Minimum Variance Portfolio Formed from Two Risky Securities

question 12

Multiple Choice

The global minimum variance portfolio formed from two risky securities will be riskless when the correlation coefficient between the two securities is

• A)0.0.
• B)1.0.
• C)0.5.
• D)-1.0.

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Definitions:

Performance Norms

Standard measures or expectations for behavior and achievements within a group or organization.

Cohesiveness

The extent to which members of a group or team are mutually attracted and motivated to stay together and achieve common goals.

Storming Stage

The second phase in group development, characterized by conflict and competition as team members start to express their individual personalities and resist the group's influence.

Infighting

Internal conflict or rivalry among members within the same organization or group, leading to reduced cohesion and effectiveness.