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Readme [11.4K]
3 years ago
6

Which of the following statement(s) is(are) true regarding the variance of a portfolio of two risky securities? I) The higher th

e coefficient of correlation between securities, the greater the reduction in the portfolio variance. II) There is a linear relationship between the securities' coefficient of correlation and the portfolio variance. III) The degree to which the portfolio variance is reduced depends on the degree of correlation between securities.
Business
1 answer:
andre [41]3 years ago
3 0

Answer:

The degree to which the portfolio variance is reduced depends on the degree of correlation between securities is the correct answer.

Explanation:

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