Answer the Following Two Questions

question 136

Multiple Choice

Answer the following two questions.Assume that the portfolio weights are positive:
-1) Can the return on a portfolio ever be less than the smallest return on an individual security in the portfolio?
2) Can the risk (variance) of a portfolio ever be less than the smallest risk (variance) of an individual security in the portfolio?

• A) No. Yes.
• B) No. No.
• C) Yes. No.
• D) Yes. Yes.

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Definitions:

Percent Increases

Percent increases are calculations used to determine the growth rate of a value or quantity over time, expressed as a percentage of its original value.

Balance Sheet Items

Components of a balance sheet which include assets, liabilities, and shareholders' equity at a specific point in time.

Financial Statement Analysis Report

This is a document that includes a detailed assessment of the financial performance, liquidity, solvency, and profitability of a company based on its financial statements.

Key Components

Essential parts or elements that are necessary for the functionality or operation of a system or process.