Fina 4310 certification Study guides, Class notes & Summaries

You plotted the monthly rate of return for two securities against time for the past 48 months. If the pattern of the movements of these two sets of returns rose and fell together the majority, but not all, of the time, then the securities have - a strong positive correlation If a stock portfolio is well diversified, then the portfolio variance - may be less than the variance of the least risky stock in the portfolio The combination of the efficient set of portfolios with a riskless lendi...