Author Question: The portfolio expected return of two investments A) will be higher when the covariance is zero. ... (Read 69 times)

Marty

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The portfolio expected return of two investments
 
  A) will be higher when the covariance is zero. B) does not depend on the covariance.
  C) will be higher when the covariance is negative. D) will be higher when the covariance is positive.

Question 2

The covariance
 
  A) must be positive B) can be positive or negative.
  C) must be less than +1. D) must be between -1 and +1.



isabelt_18

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Answer to Question 1

B

Answer to Question 2

B



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