The Global Minimum Variance Portfolio Formed from Two Risky Securities

question 40

Multiple Choice

The global minimum variance portfolio formed from two risky securities will be riskless when the correlation coefficient between the two securities is

• A)0.0
• B)1.0
• C)0.5
• D)-1.0
• E)negative

---

Definitions:

Interim Coverage

Temporary insurance protection provided between the application and the actual issuance of a policy.

Fraudulent Concealment

The act of deliberately hiding or omitting relevant information or facts with the intent to deceive or defraud.

Health Insurance

A form of insurance coverage that pays for medical and surgical expenses incurred by the insured.

Coverage

Coverage refers to the extent of protection or benefits provided under an insurance policy, detailing what specific losses or incidents are financially protected.