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Question
Which of the following is a correct expression concerning the formula for the standard deviation of returns of a two-asset portfolio where the correlation coefficient is positive?
A) σ2rp < (W12σ12 + W22σ22)
B) σ2rp = (W12σ12 + W22σ22)
C) σ2rp = (W12σ12 - W22σ22)
D) σ2rp > (W12σ12 + W22σ22)
Answer
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Related questions
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Q:
Day
1 2 3 4 Advances
870 760 960 840 Declines
880 990 790 910 Volume advancing(m)
580 620 480 510 Volume declining(m)
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6.8
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Q:
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Q:
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Q:
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard deviation of return of 39%. Stock B has an expected return of 14% and a standard deviation of return of 20%. The correlation coefficient between the returns of A and B is .4. The risk-free rate of return is 5%. The standard deviation of returns on the optimal risky portfolio is ________.
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
Which of the following is not one of the main areas covered in the examinations that must be taken in order to achieve the designation of Chartered Financial Analyst?
A) investment management ethics
B) securities analysis
C) securities marketing techniques
D) portfolio management
Q:
To become a CFA, you must do all of the following except which one?
A) Pass three exams designed to ensure that you have sufficient knowledge of investments.
B) Obtain 3 years of work experience in money management.
C) Become a member of a local Society of the Financial Analysts Federation.
D) Divest all your own stock holdings to eliminate any potential conflicts of interest with client recommendations.
Q:
A ________ insurance policy provides death benefits, with no buildup of cash value.
A) whole-life
B) universal life
C) variable life
D) term life
Q:
In a defined contribution pension plan, the ________ bears all of the fund's investment performance risk.
A) employer
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C) fund manager
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Q:
When life insurance companies seek long term investments, they are focusing on________.
A) maximizing returns
B) smoothing out long-term returns
C) tax considerations
D) the investment horizon
Q:
One of the major functions of the investment committee is to ________.
A) determine security selection of each portfolio operated by the investment company
B) translate the objectives and constraints of the investment company into an asset universe
C) determine the percentages of each security in the total investment company portfolio
D) calculate and report the overall rate of return to investment company constituents