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In General, When the Correlation Coefficient Between the Returns on Two

question 58

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In general, when the correlation coefficient between the returns on two securities is , the risk of a portfolio is
The weighted average of the total risk of the two individual securities.


Definitions:

Monthly Interest Rate

The interest rate charged or earned, expressed on a monthly basis, typically used for loans or investments.

Monthly Interest Rate

It's the interest rate applied each month on loans, savings, or investments, calculated by dividing the annual interest rate by 12.

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