If the standard deviation of the portfolio is 14.40%, the correlation between the two securities is equal

Question:

If the standard deviation of the portfolio is 14.40%, the correlation between the two securities is equal to:

A. 21.0.

B. 0.0.

C. 1.0.

Use the following data to answer Question.
A portfolio manager creates the following portfolio: image text in transcribed

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Investments Principles Of Portfolio And Equity Analysis

ISBN: 9780470915806

1st Edition

Authors: Michael McMillan, Jerald E. Pinto, Wendy L. Pirie, Gerhard Van De Venter, Lawrence E. Kochard

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Question Posted: Mar 21, 2024 07:01 AM

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If the standard deviation of the portfolio is 14.40%, the correlation between the two securities is equal

Question:

Security Security Weight Expected Standard Deviation 1 30% 20% 2 70% 12%

Step by Step Answer:

C is correct A portfolio standa...View the full answer

Investments Principles Of Portfolio And Equity Analysis

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