The expected return of a two-fund portfolio: Answers: (possibly multiple are cor

Question

The expected return of a two-fund portfolio:

Answers: (possibly multiple are correct)

a. will always be lower than the expected return of each of the individual funds.

b. will always be somewhere in between the expected return of each of the individual funds.

c. will always be higher than the expected return of each of the individual funds.

d. will always be higher than the expected return of each of the individual funds if the funds have a negative covariance.

e. will always be lower than the expected return of each of the individual funds if the funds have a negative covariance.

f. will always be somewhere in between the expected return of each of the individual funds if the funds have a negative covariance.

Explanation / Answer

b. will always be somewhere in between the expected return of each of the individual funds.

f. will always be somewhere in between the expected return of each of the individual funds if the funds have a negative covariance.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.