Use the Table for the Question(s)below

question 69

Multiple Choice

Use the table for the question(s) below.
Consider the following covariances between securities:
-Which of the following statements is FALSE?

• A)We say a portfolio is an efficient portfolio whenever it is possible to find another portfolio that is better in terms of both expected return and volatility.
• B)We can rule out inefficient portfolios because they represent inferior investment choices.
• C)The volatility of the portfolio will differ,depending on the correlation between the securities in the portfolio.
• D)Correlation has no effect on the expected return on a portfolio.

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Definitions:

Interests

Preferred activities influenced by an individual’s values which also can provide information about potential career choices.

Salary

Salary refers to a fixed regular payment, typically expressed on an annual basis, made by an employer to an employee, especially a professional or white-collar worker.

Values

A set of beliefs or ideas developed throughout an individual’s life which are important to him or her and are likely to predict the type of career the individual will enjoy.

Interest Inventories

Tests widely used in counseling and career assessment which evaluate a client’s interest, provide a wealth of knowledge of a client’s likes or dislikes, and gain insight into an individual’s personality.