Which One of the Following Statements Is Correct

question 27

Multiple Choice

Which one of the following statements is correct?

• A)A portfolio variance is a weighted average of the variances of the individual securities which comprise the portfolio.
• B)A portfolio variance is dependent upon the portfolio's asset allocation.
• C)A portfolio variance is unaffected by the correlations between the individual securities held in the portfolio.
• D)The portfolio variance must be greater than the lowest variance of any of the securities held in the portfolio.
• E)The portfolio variance must be less than the lowest variance of any of the securities held in the portfolio.

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Definitions:

SUD (Substance Use Disorder)

A medical condition characterized by the uncontrollable use of substances despite harmful consequences, previously known as drug or substance addiction.

Chronic Relapsing Condition

A long-term illness characterized by periods of improvement followed by recurrence of symptoms, often seen in addiction and some chronic diseases.

Cognitive-Behavioral Therapeutics

A form of psychotherapy that treats problems and boosts happiness by modifying dysfunctional emotions, behaviors, and thoughts.

CENAPS

An acronym for the Center for Applied Sciences, which develops models and strategies for the treatment of addiction and related disorders.