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:

Brightness

the perception of how luminous or radiant a light source appears to the eye, often influenced by its intensity and surroundings.

Loudness

The perception of the intensity of sound waves, often described as the volume, and can be measured in decibels.

Cochlea

A coiled, bony, fluid-filled tube in the inner ear; sound waves traveling through the cochlear fluid trigger nerve impulses.

Hammer, Anvil, Stirrup

The three smallest bones in the human body, located in the middle ear, that play a key role in transmitting sound vibrations to the inner ear.