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Question
Which one of the following statements is correct?A. A portfolio variance is a weighted average of the variances of the individual securities which comprise the portfolio.
B. A portfolio variance is dependent upon the portfolio's asset allocation.
C. A portfolio variance is unaffected by the correlations between the individual securities held in the portfolio.
D. The portfolio variance must be greater than the lowest variance of any of the securities held in the portfolio.
E. The portfolio variance must be less than the lowest variance of any of the securities held in the portfolio.
Answer
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Related questions
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Which one of the following statements regarding an original issue $25,000 GNMA bond is correct?
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Q:
Assume there are 475 million people in the United States, 175 million of which make up the labor force. If 16 million are unemployed, what is the unemployment rate?
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Q:
An analyst gathered the following year-end price level data for an economy. What is the economy's annual inflation rate for 2012?A. 3.22%B. 3.42%C. 3.68%D. 3.87%E. 3.92%
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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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E. elect to continue holding their bonds; they want to continue receiving the interest payments
Q:
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