Which of the Following Is a Correct Expression Concerning the Formula

question 54

Multiple Choice

Which of the following is a correct expression concerning the formula for the standard deviation of returns of a two asset portfolio where the correlation coefficient is positive?

• A) \(\sigma\)²rp < (W₁²\(\sigma\)₁² + W₂²\(\sigma\)₂²)
• B) \(\sigma\)²rp = (W₁²\(\sigma\)₁² + W₂²\(\sigma\)₂²)
• C) \(\sigma\)²rp = (W₁²  ₁² - W₂²\(\sigma\)₂²)
• D) \(\sigma\)²rp > (W₁²\(\sigma\)₁² + W₂²\(\sigma\)₂²)

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Definitions:

Perform Reaction

The process of conducting a chemical reaction under specified conditions to yield products.

Scatterplot

A graph in which the values of two variables are plotted along two axes, allowing for the visualization of relationships or patterns between them.

Graphical Tool

Visual instruments like charts, graphs, and plots used for analysis and data presentation.

Variables

Elements or features that can vary among individuals or over time and are measured or controlled in scientific research.