For the Standard Deviation of a Minimum Variance Portfolio of Two

question 45

Multiple Choice

For the standard deviation of a minimum variance portfolio of two assets to be zero, the correlation between the assets must be __________.

• A) - 100
• B) - 1
• C) 0
• D) + 1
• E) + 100

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Definitions:

Prospective Country

A term potentially referring to a country viewed with regard to its future potential for development, investment, or growth.

Beaten Paths

Established methods or routines that have been widely used or explored, often implying a lack of innovation.

Home Country

Refers to the country where a company is headquartered or originates from.

Migration Behavior

The patterns or tendencies of individuals or groups to move from one location to another, often in search of better living conditions.