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Author Question: The portfolio expected return of two investments A) will be higher when the covariance is zero. ... (Read 127 times)

Marty

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on: Jun 24, 2018
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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Reply #1 on: Jun 24, 2018
Answer to Question 1

B

Answer to Question 2

B


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