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You Are Given a Two-Asset Portfolio with a Fixed Correlation

Question 15

Multiple Choice

You are given a two-asset portfolio with a fixed correlation coefficient. If the weights of the two assets are varied the expected portfolio return would be ____ and the expected portfolio standard deviation would be ____.


A) nonlinear, elliptical
B) nonlinear, circular
C) linear, elliptical
D) linear, circular
E) circular, elliptical

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