If portfolio weights are positive (i.e., you cannot borrow money): 1) Can the standard deviation of...
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If portfolio weights are positive (i.e., you cannot borrow money): 1) Can the standard deviation of a portfolio ever be less than the smallest standard deviation of an individual security in the portfolio? 2) Can the standard deviation of a portfolio ever be more than the greatest standard deviation of an individual security in the portfolio? O 1) yes; 2) yes O 1) yes; 2) no O 1) no: 2) no 1) no; 2) yes If portfolio weights are positive (i.e., you cannot borrow money): 1) Can the standard deviation of a portfolio ever be less than the smallest standard deviation of an individual security in the portfolio? 2) Can the standard deviation of a portfolio ever be more than the greatest standard deviation of an individual security in the portfolio? O 1) yes; 2) yes O 1) yes; 2) no O 1) no: 2) no 1) no; 2) yes
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The correct answer is A 1 YES 2 YES Explanation it is true that the a s... View the full answer
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
Posted Date:
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