Question
QUESTION 33 As the number of assets in a portfolio increases towards infinity, which of the following will happen? A. On average, the portfolio return
QUESTION 33
As the number of assets in a portfolio increases towards infinity, which of the following will happen?
A. On average, the portfolio return will fall
B. The portfolio variance will tend towards zero
OC. The unsystematic risk in the portfolio will tend towards zero
D. The systematic risk in the portfolio will tend towards zero
QUESTION 34
The standard deviation of a two-asset portfolio is a linear function of the assets' weights when:
A. The assets have a correlation coefficient less than zero
B. The assets have a correlation coefficient equal to zero
OC. The assets have a correlation coefficient greater than zero
D. The assets have a correlation coefficient equal to one
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How To Be A Finance Rock Star
Authors: Nicole A Fende, Carol Roth
1st Edition
0983765901, 978-0983765905
