Which of the following statements is FALSE?A) When stocks are perfectly positively correlated, the set of portfolios is identified graphicallyby a straight line between them.B)…
Which of the following statements is FALSE?A) When stocks are perfectly positively correlated, the set of portfolios is identified graphicallyby a straight line between them.B) An investor seeking high returns and low volatility should only invest in an efficientportfolio.C) When the correlation between securities is less than 1, the volatility of the portfolio isreduced due to diversification.D) Efficient portfolios can be easily ranked, because investors will choose from among themthose with the highest expected returns.
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