If Two Stocks Have a Correlation of +1,then the Standard

question 47

True/False

If two stocks have a correlation of +1,then the standard deviation of a portfolio between them is given by:
σ_p = wσ₁ + (1 - w)σ₂

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Definitions:

Advance

A payment made beforehand, often as part of a contractual agreement or as a loan that expects repayment under specific terms.

Interest Expense

The cost incurred by an entity for borrowed funds, which is reported on the income statement.

Pre-Acquisition Dividend

Dividends declared by a subsidiary prior to being acquired or controlled by the parent company.

Final Dividend

The last dividend payment made by a company to its shareholders for a fiscal year, after the company's final annual earnings are known.