We can reduce volatility by investing in less than perfectly correlated assets through diversification because the expected return of a portfolio is the weighted average of the expected returns of its stocks, but the volatility of a portfolio ________
A) is higher than the weighted average volatility
B) is independent of weights in the stocks
C) is less than the weighted average volatility
D) depends on the expected return
Answer: C
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Which of the following is a probing question Jeff can ask the merchandising manager?
A) If I understand you, knowing only the song playing when the customer reaches the register doesn't take into account patterns of shopping, purchasing triggers, or waits in a checkout line? B) Do you have point-of-purchase software that allows you to track time and amount of purchase? C) How does your current music provider track the correlation between songs and purchases? D) Would it help you to be able to track songs as customers browse and shop? E) Does knowing the song playing at the moment the customer gets to the register give you the information you really need to create an effective mix?