Which One of These Conditions Must Exist If the Standard

question 10

Multiple Choice

Which one of these conditions must exist if the standard deviation of a portfolio comprised of two securities is to be less than the weighted average of the standard deviations of the individual securities held within that portfolio?

• A)β < 1
• B)R_m > 1
• C)ρ < 1
• D)β = 0
• E)ρ > 1

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Definitions:

Avoidant Personality Disorder

A psychiatric condition characterized by a long-standing pattern of extreme shyness, feelings of inadequacy, and sensitivity to rejection.

Schizoid Personality Disorder

A condition characterized by a long-standing pattern of detachment from social relationships and a limited range of emotional expression.

Difference

The distinguishing factor or characteristic that sets one thing apart from another.

Borderline Personality Disorder

A mental health disorder characterized by persistent instability in moods, behavior, self-image, and functioning, often resulting in impulsive actions and unstable relationships.