When two risky securities that are positively correlated but not perfectly correlated are held in a portfolio,

A. standard deviation of returns.

B. unique risk.

C. specific risk.

D. reinvestment risk.

E. beta

A. unsystematic risk.

B. interest rate risk.

C. market risk.

D. reinvestment risk.

E. unique risk.

A. the assets have a correlation coefficient less than one.

B. the assets have a correlation coefficient equal to one.

C. the assets have a correlation coefficient equal to zero.

D. the assets have a correlation coefficient greater than zero.

E. the assets have a correlation coefficient less than zero

A. None of these is correct.

B. The point of tangency with the opportunity set and the capital allocation line.

C. The point of tangency with the indifference curve and the capital allocation line.

D. The point of highest reward to variability ratio in the opportunity set.

E. The point of the highest reward to variability ratio in the indifference curve

A. There is a linear relationship between the securities' coefficient of correlation and the portfolio variance.

B. The higher the coefficient of correlation between securities, the greater the reduction in the portfolio variance and there is a linear relationship between the securities' coefficient of correlation and the portfolio variance.

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

D. The higher the coefficient of correlation between securities, the greater the reduction in the portfolio variance.

E. The higher the coefficient of correlation between securities, the greater the reduction in the portfolio variance and the degree to which the portfolio variance is reduced depends on the degree of correlation between securities.

A. 1.0% and 1.2%

B. 0.7% and 1.5%

C. 0.8% and 1.3%

D. None of these is correct.

E. 1.2% and 1.0%

A. the portion of the investment opportunity set that lies above the global minimum variance portfolio.

B. both the portion of the investment opportunity set that lies above the global minimum variance portfolio and the portion of the investment opportunity set that represents the highest standard deviations.

C. the portion of the investment opportunity set which includes the portfolios with the lowest standard deviation.

D. the set of portfolios that have zero standard deviation.

E. the portion of the investment opportunity set that represents the highest standard deviations