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    Exam 7: Optimal Risky Portfolios
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    Consider an Investment Opportunity Set Formed with Two Securities That
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Consider an Investment Opportunity Set Formed with Two Securities That

Question 1

Question 1

Multiple Choice

Consider an investment opportunity set formed with two securities that are perfectly negatively correlated.The global minimum variance portfolio has a standard deviation that is always


A) greater than zero.
B) equal to zero.
C) equal to the sum of the securities' standard deviations.
D) equal to -1.
E) none of the above.

Correct Answer:

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