Question: When would a portfolio's variance be equal to the weighted average of the variances of the assets in the portfolio? A.Only when the portfolio is

  • When would a portfolio's variance be equal to the weighted average of the variances of the assets in the portfolio?A.Only when the portfolio is very well diversified.
  • B.Only when the portfolio's asset returns are perfectly positively correlated.
  • C.Never- the portfolio variance is always less than the weighted average of variances of the assets within the portfolio.
  • D.Only when markets are strong-form efficient.
  • E.Only when each asset is given equal weight in the portfolio.

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