Multiple Choice
Which of the following statements is false regarding the investment opportunity set of two assets?
A) If the correlation is + 1, it is a straight line.
B) It graphically illustrates all possible portfolio combinations between the two assets.
C) It is a straight line if one of the assets is risk-free.
D) Assuming positive portfolio weights, it can never plot below the lowest expected return asset.
E) It is not applicable when the assets have a zero correlation.
Correct Answer:
Verified
Correct Answer:
Verified
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