Combining Positively Correlated Assets Having the Same Expected Return Results

question 102

Multiple Choice

Combining positively correlated assets having the same expected return results in a portfolio with___________level of expected return and ___________level of risk.

• A) a higher; a lower
• B) the same; a lower
• C) a lower; a higher
• D) the same; a higher

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Definitions:

Membrane Receptor

A specialized protein molecule embedded in the cell membrane that can interact with specific molecules, starting a chain of cell responses.

Depolarization

The process in which a cell's membrane potential becomes less negative, moving towards zero, which is critical in the initiation of action potentials.

Threshold Stimulus

Stimulus resulting in a local potential just large enough to reach threshold and produce an action potential.

All-Or-None Contraction

A principle stating that a nerve or muscle fiber responds completely or not at all to a stimulus once the stimulus reaches a threshold value.