If a Portfolio Consists of Two Investments Which Have Perfectly

question 13

Multiple Choice

If a portfolio consists of two investments which have perfectly correlated returns,the portfolio standard deviation is:

• A)the sum of the products of the squared portfolio weights and the variances of the investment returns.
• B)the absolute value of the portfolio-weighted average of the standard deviations of the two investments.
• C)is the difference between the portfolio-weighted average of the standard deviations of the two investments.
• D)twice the product of the two portfolio weights and the covariance between the investment returns.

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Definitions:

Active Play

Active play involves physical activities that are engaging and energetic, contributing to the physical development of children.

Quiet Environment

A setting or atmosphere where noise and disturbances are minimally present, often conducive to concentration or relaxation.

Prefrontal Cortex

The region at the front of the brain associated with decision making, personality expression, complex planning, and moderating social behaviour.

Frontal Lobe

The frontal lobe is a region of the brain responsible for executive functions, such as decision-making, problem-solving, control of purposeful behaviors, consciousness, and emotions.