In a Portfolio Consisting of Two Perfectly Negatively Correlated Securities

question 31

True/False

In a portfolio consisting of two perfectly negatively correlated securities, the highest attainable expected return will consist of a portfolio containing 100% of the asset with the highest expected return.

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Definitions:

Fast-Food Restaurants

Eateries that serve food quickly and efficiently, often part of a chain, and typically offer a limited menu of items that are prepared in advance and kept warm until sold.

Rationality

The quality of being based on or in accordance with reason or logic.

Colonialism

The practice of acquiring full or partial political control over another country, occupying it with settlers, and exploiting it economically.

Geopolitical Position

The strategic importance of a country or region as determined by its geographic location in relation to political power, resources, and conflicts.