Question: 1. If the correlation coefficient between the returns on a portfolio and the market portfolio is 1.0, this is an efficient portfolio. True, false, or
1. If the correlation coefficient between the returns on a portfolio and the market portfolio is 1.0, this is an efficient portfolio. True, false, or uncertain? Why?
2. The standard deviation of a portfolio return is (greater than, equal to less than) a weighted average of the standard deviations of the individual securities comprising the portfolio. Describe all possibilities with the conditins and explain why.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
