Use the Table for the Question(s)below

question 89

Multiple Choice

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

• A)When stocks are perfectly positively correlated,the set of portfolios is identified graphically by a straight line between them.
• B)An investor seeking high returns and low volatility should only invest in an efficient portfolio.
• C)When the correlation between securities is less than 1,the volatility of the portfolio is reduced due to diversification.
• D)Efficient portfolios can be easily ranked,because investors will choose from among them those with the highest expected returns.

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Definitions:

Significant Problem

An issue or challenge of considerable importance or impact that warrants attention and resolution.

Instructional Design Process

A systematic development of educational and training programs in an effective and reliable manner that addresses the needs of learners and helps them achieve specific learning objectives.

Organization Analysis

A process for determining the appropriateness of training by evaluating the characteristics of the organization.

Organization Analysis

The process of reviewing the development, work environment, personnel, and operation of a business or another type of association to identify areas of improvement.