Determine whether the following statement is true or false and explain why The profitability of a portfolio of many securities can never exceed the yield of the highest yield security in the portfolio, but it can have a risk lower than the lowest risk security ...

The Statement is true The profitability of a portfolio is equal to the weighted ave ...

Determine whether the following statement is true or false and explain why: The profitability of a portfolio

Question:

Determine whether the following statement is true or false and explain why: “The profitability of a of many securities can never exceed the yield of the highest-yield security in the but it can have a risk lower than the lowest-risk security.”
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...