If the variance of a portfolio increases, then the portfolio standard deviation will Blank______. Multiple choice question. not be affected increase decrease
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If the variance of a portfolio increases, then the portfolio standard deviation will Blank______.
not be affected
increase
decrease
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- In a two-asset portfolio, a ________ covariance of returns between the two securities will lead to the greatest reduction in the variance of the portfolio. O negative O positive O relative systematicPortfolio standard deviation is negatively associated with the covariance among the assets in the portfolio. Select one: True FalsePortfolios that offer the highest expected return for a given variance (or standard deviation) are known as efficient portfolios. O true false
- a)define market risk. b)define delta-hedged position and describe delta hedging. c)describe gamma hedging and vega hedging. d)define and explain value at risk (VAR). e)describe the analytical (variance-covariance) method of calculating VAR, and discuss its advantages and disadvantages.Which of the following would not be acceptable as a measure of basic investment risk? a)Expected Return b) Range of Returns c)Variance of Returns d)Standard Deviation of ReturnsWhat is the expected return on a two asset portfolio and what are its variance and standard deviation. What is R squared? Please keep it short and simple but making lots of sense. thanks
- Mean-variance expected utility is given by Eu = e-, where e is expected return, v is the variance of the portfolio and tis risk tolerance. Suppose an investor has risk-loving preferences. What can we say about the value of t? Select one: Ot1 O. t>0 O t=0When might a favorable variance not be a good outcome?The appropriate measure of risk used in Sharpe's measure of portfolio evaluation is a. Range b. Variance c. Beta d. Standard deviation
- According to modern portfolio theory, pair-wise covariance is more important to total portfolio risk than individual security variance. True or FalseA financial risk is not possible to evaluate with Select one from the following options. mean value variability coefficient of variability standard deviationPlease do not give solution in image format Thankyou
