Question: Consider a portfolio with three securities having risks sigma 1, sigma 2, and sigma 3 and correlation coefficients rho 12, rho 13, and rho 23.

Consider a portfolio with three securities having risks sigma 1, sigma

Consider a portfolio with three securities having risks sigma 1, sigma 2, and sigma 3 and correlation coefficients rho 12, rho 13, and rho 23. Let V be the covariance matrix of the security returns. Show that V is positive definite if and only if the following hold

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