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.

---

Definitions:

Internal Processes

The operations or activities that occur within an organization or system which are crucial for its functioning.

Effectiveness

The degree to which objectives are achieved and desired outcomes are realized, often used as a metric for success in various contexts.

Seven Key Competencies

A set of crucial abilities or skills deemed essential for effective performance in a job or activity.

Success

The achievement of an objective or goal, often marked by prosperity, attainment, or accomplishment.