Multiple Choice

Image URL just in case: http://i.imgur.com/x2dT7rW.png

Please share explanations, thank you.

Choose a false statement. Covariance of two random variables X and Y can be larger than 1. The correlation coefficient should be between -1 and +1. Correlation coefficient of two random variables X and Y is 0.4 if the correlation coefficient of two random variables (2 times X) and (2 times Y) is also 0.4. Covariance of two random variables X and Y can be 7% when SD(X)= SD(Y) =10%. To maximize the Sharpe ratio of your portfolio, what assets should you NOT include in your portfolio when other things are equal? Assets with low standard deviation. Assets with high expected return. Assets with low covariance with other assets in your portfolio. Assets with high covariance with other assets in your portfolio