For Two Investments with a Correlation Coefficient (Rij) Less Than

question 11

Multiple Choice

For two investments with a correlation coefficient (rij) less than +1, the portfolio standard deviation will be __________ the weighted average of the individual investments' standard deviation.

• A)more than
• B)less than
• C)equal to
• D)zero compared to

---

Definitions:

Virtue-Based

Pertains to ethics and moral philosophy emphasizing the role of character and virtue in moral theory rather than either doing one’s duty or acting in order to bring about good consequences.

Ethical Theory

A field of philosophy focused on organizing, justifying, and advising on principles of ethical and unethical actions.

Moral Obligation

A duty or commitment to act in a way that is considered morally right.

Altruistic Service Behaviors

Acts performed by individuals or leaders aimed at helping or benefiting others without expecting anything in return.