Which one of these conditions must exist if the standard deviation of a portfolio is to be less than the weighted average of the standard deviations of the individual securities held within that portfolio?
a. β< 1
b. Rm> 1
c. ρ< 1
d. β = 0
e. ρ >1
c. ρ< 1
the above is the answer
because this means lower correlation among the securities which would reduce the portfolio standard deviation die to benefit of diversifaction.
Which one of these conditions must exist if the standard deviation of a portfolio is to...
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