If the Portfolio Variance Were Equal to Zero, the Amount

question 6

Multiple Choice

If the portfolio variance were equal to zero, the amount of risk would be

• A)unity.
• B)a positive number greater than 1.
• C)negative always.
• D)zero.

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Definitions:

Chi-squared Goodness-of-fit

A statistical test used to determine if observed data matches the expected distribution of a given hypothesis.

Chi-squared Tests

Statistical tests used to determine if there is a significant difference between observed frequencies and the frequencies expected under a specific hypothesis.

Nominal Data

Categorical data that cannot be logically ordered or ranked.

Two Categories

A classification method that divides items or subjects into two distinct groups based on specific criteria.