If Two Stocks Have a Correlation of +1,then the Standard

question 47

True/False

If two stocks have a correlation of +1,then the standard deviation of a portfolio between them is given by:
σ_p = wσ₁ + (1 - w)σ₂

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Definitions:

Financing Activities

Transactions a company engages in to finance its operations and expansions, such as issuing equity, taking on debt, or repaying loans, reported in the cash flow statement.

Dividends

Payments made by a corporation to its shareholder members, typically distributed from profits.

Capital Expenditure

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, or equipment.

Dividend Increase

An increase in the amount of payment made by a corporation to its shareholders, usually realized when the company has achieved additional profits.