You Are Graphing the Investment Opportunity Set for a Portfolio

question 48

Multiple Choice

You are graphing the investment opportunity set for a portfolio of two securities with the expected return on the vertical axis and the standard deviation on the horizontal axis. If the correlation coefficient of the two securities is +1, the opportunity set will appear as which one of the following shapes?

• A)conical shape
• B)linear with an upward slope
• C)combination of two straight lines
• D)hyperbole
• E)horizontal line

---

Definitions:

Federal Discrimination Legislation

A collection of laws enacted at the federal level in the United States to prevent discrimination based on race, color, religion, sex, national origin, age, disability, or genetic information.

Equal Opportunity

The principle or policy of providing the same chances, benefits, and fair treatment to all individuals irrespective of their race, age, gender, religion, or other such criteria.

Civil Rights Act

Landmark federal legislation in the US that prohibits discrimination on the basis of race, color, religion, sex, or national origin and fosters equal opportunity.

Pregnancy Discrimination Act

A federal law that forbids discrimination based on pregnancy, childbirth, or related medical conditions in the workplace.