Which of the following is a correct expression concerning the formula for the standard deviation of returns of a two-asset portfolio where the correlation coefficient is positive? A) σ^2rp (W₁²σ₁² + W₂²σ₂²)

Question

Which of the following is a correct expression concerning the formula for the standard deviation of returns of a two-asset portfolio where the correlation coefficient is positive? A) σ^2rp < (W₁²σ12 + W22σ₂²) B) σ^2rp = (W₁2σ₁² + W22σ22) C) σ^2rp = (W₁²σ₁² - W₂²σ₂²) D) σ^2rp > (W₁²σ₁² + W₂²σ₂²)

Quizplus · Accepted Answer

The Answer of Which of the following is a correct expression concerning the formula for the standard deviation of returns of a two-asset portfolio where the correlation coefficient is positive? A) σ^2rp < (W₁²σ12 + W22σ₂²) B) σ^2rp = (W₁2σ₁² + W22σ22) C) σ^2rp = (W₁²σ₁² - W₂²σ₂²) D) σ^2rp > (W₁²σ₁² + W₂²σ₂²)

Which of the Following Is a Correct Expression Concerning the Formula