The Standard Deviation of a Two-Asset Portfolio Is a Linear

question 24

Multiple Choice

The standard deviation of a two-asset portfolio is a linear function of the assets' weights 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 less than one.

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Definitions:

Peripheral Nervous System

The part of the nervous system outside the brain and spinal cord, including all the nerves that branch out to the rest of the body.

Somatic...Autonomic

Refers to the distinction between the somatic nervous system that controls voluntary movements and the autonomic nervous system that regulates involuntary body functions.

Sympathetic...Parasympathetic

Components of the autonomic nervous system, with the sympathetic division preparing the body for stress or emergency situations, while the parasympathetic division promotes relaxation and recovery.

Primary Somatosensory Cortex

The region of the brain responsible for processing tactile information from the body, located in the parietal lobes.