which of the following statements is true?

which of the following statements is true?

which of the following statements is true?

In a short sale, you sell a stock that you do not own and then buy that stock back in the future Reducing risk by investing in a risk-free investment such as T-Bills will improve the expected return O A portfolio that consists of a short position in the risky investment is known as a levered portfolio Efficient portfolios offer the highest possible level of volatility for a given expected return The lower the correlation, the higher the volatility we can obtain As correlation decreases, the risk-return curve showing the portfolios will bend more to the left As correlation increases, the expected return of a portfolio falls Correlation affects both the expected return and volatility of a portfolio o Covariance is a measure of the common risk shared by stocks that does not depend on their volatility If the covariance is zero, the two returns tend to move together If the covariance is zero, the two returns tend to move in opposite directions The correlation between two stocks will always be between - 1 and +1