Multiple Choice
An investor can design a risky portfolio based on two shares, A and B. The standard deviation of return on Share A is 20% while the standard deviation on Share B is 15%. The correlation coefficient between the return on A and B is 0%. The standard deviation of return on the minimum variance portfolio is ________.
A) 0%
B) 6%
C) 12%
D) 17%
Correct Answer:
Verified
Correct Answer:
Verified
Q12: Asset A has an expected return of
Q16: Risk that can be eliminated through diversification
Q26: You put half of your money in
Q27: The expected rate of return of a
Q27: Based on the outcomes in the table
Q30: Which of the following provides the best
Q32: A portfolio is composed of two shares,
Q33: In order to construct a riskless portfolio
Q36: An investor can design a risky portfolio
Q51: As you lengthen the time horizon of