Which of the Following Statement(s) Is(are) True Regarding the Variance

question 20

Multiple Choice

Which of the following statement(s) is(are) true regarding the variance of a portfolio of two risky securities?
I. The higher the coefficient of correlation between securities, the greater the reduction in the portfolio variance.
II. There is a linear relationship between the securities' coefficient of correlation and the portfolio variance.
III. The degree to which the portfolio variance is reduced depends on the degree of correlation between
Securities.

• A) I only
• B) II only
• C) III only
• D) I and II
• E) I and III

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Definitions:

Fear of Death

This is the existential anxiety concerning the inevitability and unpredictability of death.

Existential Counselors

Therapists who focus on helping individuals confront and understand the existential aspects of life, such as meaning, choice, and mortality.

Promoting Responsibility

Strategies in counseling and therapy that encourage individuals to take accountability for their actions and the consequences thereof, fostering personal growth.

Independence

The state or condition of being free from dependence, influence, or control by others.