Author Question: If the portfolio variance were equal to zero, the amount of risk would be a. unity. b. a positive ... (Read 41 times)

Zoey63294 · **on:** Jun 24, 2018

If the portfolio variance were equal to zero, the amount of risk would be
a. unity. b. a positive number greater than 1.
c. negative always. d. zero.

Question 2

Fitting a model too closely to sample data, resulting in a model that does not accurately reflect the population is termed as
a. approximation. b. hypothesizing.
c. overfitting. d. postulating.

raili21 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

d
RATIONALE: If the portfolio variance were equal to zero, then every scenario return would be equal, and there would be no risk.

Answer to Question 2

c
RATIONALE: Fitting a model too closely to sample data, resulting in a model that does not accurately reflect the population is termed as overfitting.