You currently have a portfolio comprised of 70 percent stocks and 30 percent bonds. Which one of the following must be true if you change the asset allocation?
A. The portfolio variance will be unaffected.
B. The expected return will remain constant.
C. The two portfolios could have significantly different standard deviations.
D. The revised portfolio will be perfectly negatively correlated with the initial portfolio.
E. The portfolio variance will most likely decrease in value.
Answer: C
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A. Japanese B. Swedish C. French D. Indian