If the Correlation Between Two Shares Is +1, Then a Portfolio

question 59

Multiple Choice

If the correlation between two shares is +1, then a portfolio combining these two shares will have a variance that is:

• A)less than the weighted average of the two individual variances.
• B)greater than the weighted average of the two individual variances.
• C)equal to the weighted average of the two individual variances.
• D)less than or equal to average variance of the two weighted variances, depending on other
• Information.
• E)None of the above.

---

Definitions:

Shape Width

The horizontal dimension or extent of a shape or object, typically measured in units such as pixels, inches, or centimeters.

Size Group

A collection of resizing commands or options within a software application, typically found in toolbars for adjusting the dimensions of selected objects.

Format Tab

A section within a software application that contains tools for adjusting the structure and appearance of content.

Picture Tools Tab

A tab in some software applications that provides options and settings to edit and format images within a document.