The Standard Deviation of a Two-Asset Portfolio Is a Linear

question 24

Multiple Choice

The standard deviation of a two-asset portfolio is a linear function of the assets' weights when

• A) the assets have a correlation coefficient less than zero.
• B) the assets have a correlation coefficient equal to zero.
• C) the assets have a correlation coefficient greater than zero.
• D) the assets have a correlation coefficient equal to one.
• E) the assets have a correlation coefficient less than one.

---

Definitions:

Clade

A group of organisms that includes a single ancestor and all its descendants, representing a branch on the tree of life.

Sexual Dimorphism

The condition where the two sexes of the same species exhibit different characteristics beyond the differences in their sexual organs.

Physical Disparity

Refers to the noticeable difference or inequality in size, strength, or ability between entities or individuals.

Evolutionary History

The chronological sequence of biological events and processes that has led to the development and diversification of life on Earth over millions of years.