Business, 11.06.2021 04:50 pelaezaiden35
The principle of diversification teaches us that using two securities it is always possible to find a portfolio with no short positions with a variance that is:
A. Zero
B. Less than the variance of each asset
C. Less than the variance of each asset, except when the two assets are perfectly positively correlated.
D. None of the above.
Answers: 3
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