The Portfolio Standard Deviation Will Be Equal to the Weighted

question 49

Multiple Choice

The portfolio standard deviation will be equal to the weighted average of its components' standard deviations only if the correlation coefficient for returns among the components is

• A) -1.
• B) 1.
• C) .5.
• D) -.5.

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Definitions:

Carbohydrates

Organic compounds, including sugars, starches, and fiber, that are major sources of energy for the body.

Amino Acids

Organic compounds that combine to form proteins, serving as the building blocks of life.

Essential

Absolutely necessary; extremely important in a particular situation or for a specific process.

Fiber

A dietary substance found in fruits, vegetables, and whole grains that aids in digestion and maintaining a healthy weight.