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.

---

Definitions:

Domestic Consumers

Individuals or households within a country that purchase goods and services for personal use.

Tariffs

Taxes imposed on imported goods, used by governments to regulate trade and protect domestic industries.

Foreign Supplier

An overseas entity that provides goods or services to another company or organization within a different country.

Home Market

The domestic marketplace where goods and services are bought and sold within a country.