Question: Chapter 11 QUESTION 1 1. If two stock have zero correlation, then the various combination of portfolio of these two stocks will no help to

Chapter 11 QUESTION 1 1. If two stock have zero correlation, then the various combination of portfolio of these two stocks will no help to lower the risk. True False 2. The minimum return portfolio determines the lower bound of the efficient portfolio. True False QUESTION 3 You are a risk averse investor. You are willing to add an investment with high volatility provided the correlation coefficient of this investment with other stocks in the portfolio is not less than +1. True False

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