A Two-Asset Portfolio with a Standard Deviation of Zero Can

question 14

Multiple Choice

A two-asset portfolio with a standard deviation of zero can be formed when

• A) the assets have a correlation coefficient less than zero.
• B) the assets have a correlation coefficient equal to zero.
• C) the assets have a correlation coefficient greater than zero.
• D) the assets have a correlation coefficient equal to one.
• E) the assets have a correlation coefficient equal to negative one.

---

Definitions:

Existential Import

In logic, existential import refers to the implication that the subjects of a statement necessarily exist. It is crucial in understanding categorical propositions.

Modern View

Current or contemporary perspectives and understandings in a particular field or on a particular topic.

Existential Import

In logic, refers to the assumption that a statement implies the existence of the subject it mentions.

Emotions

Complex psychological states involving subjective experiences, physiological responses, and behavioral or expressive reactions.