As Long as the Correlations Between the Securities Are Less

question 30

Multiple Choice

As long as the correlations between the securities are less than 1 or greater than -1, the northwest portion of their risk/return will

• A) consist of one portfolio.
• B) not allow an optimal solution.
• C) be concave.
• D) be a straight line.

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Definitions:

Great Suffering

A state of intense pain, distress, or hardship, which can be physical, emotional, or psychological in nature.

Many of People

Refers broadly to a large number of individuals in a group or population.

Immanuel Kant

A German philosopher in the 18th century, known for his works in epistemology, ethics, and aesthetics, particularly the philosophy of transcendental idealism.