The Portfolio Expected Return of Two Investments

question 148

Multiple Choice

The portfolio expected return of two investments

• A)will be higher when the covariance is zero.
• B)will be higher when the covariance is negative.
• C)will be higher when the covariance is positive.
• D)does not depend on the covariance.

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Definitions:

Organizational Representation

The act of portraying or embodying the interests and values of an organization by its members.

Psychological Contract

Refers to the unwritten set of expectations between an employer and employee regarding mutual obligations.

Reciprocal Obligations

Mutual expectations or duties that are shared between individuals, groups, or organizations, often based on agreements or societal norms.

Explicit Agreement

A clearly defined and articulated agreement between parties, potentially including contractual elements, that details specific terms and conditions.