Which of the Following Is an Assumption of Mean-Variance Analysis

question 19

Multiple Choice

Which of the following is an assumption of mean-variance analysis?

• A)The securities have zero covariance.
• B)There are no arbitrage opportunities.
• C)The securities have either perfect positive or negative correlation.
• D)Financial markets are frictionless.

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Definitions:

Burglary

A crime in which someone unlawfully enters a building with intent to commit a felony or theft.

Robbery

The unlawful taking or attempted taking of personal property by force or threat of force and/or by putting the victim in fear.

Explosive Device

A tool or weapon designed to explode, causing damage or destruction through the rapid release of energy.

Arson

The crime of intentionally setting fire to another’s property.