Question: A portfolio includes two assets. The portfolio's standard deviation equals to the weighted average mean of the two assets' standard deviation. The correlation of these

  1. A portfolio includes two assets. The portfolio's standard deviation equals to the weighted average mean of the two assets' standard deviation. The correlation of these two assets is closest to: NOT 100% Sure About This One
a) -1.
b) 0.
c) 1.

2. An investor primarily invests in stocks of publicly traded companies. The investor wants to increase the diversification of his portfolio. A friend has recommended investing in real estate properties. The purchase of real estate would best be characterized as a transaction in the:

a) Derivative investment market

b) Tradition investment market

c) Alternative investment market

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