When Two Risky Securities That Are Positively Correlated but Not

question 72

Multiple Choice

When two risky securities that are positively correlated but not perfectly correlated are held in a portfolio,

• A) the portfolio standard deviation will be greater than the weighted average of the individual security standard deviations.
• B) the portfolio standard deviation will be less than the weighted average of the individual security standard deviations.
• C) the portfolio standard deviation will be equal to the weighted average of the individual security standard deviations.
• D) the portfolio standard deviation will always be equal to the securities' covariance.

Analyze the effects of global events on financial markets and institutions.

Understand the foundations and criticisms of various personality theories.

Describe and critique the methods used to measure personality variables.

Explain the development and functions of personality structures and traits.

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Definitions:

Weight-Bearing Exercise

Physical activities that require one to support their own body weight, such as walking, running, or lifting weights, which help in strengthening bones and muscles.

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A fat-soluble vitamin that's critical for bone health and immune function, obtained through sun exposure, diet, and supplements.

Sodium Intake

The amount of sodium, a mineral essential for bodily functions, consumed through diet.

Body Mass Index

A numerical value derived from a person's weight and height, used to indicate if a person is underweight, normal weight, overweight, or obese.