Answer the following two questions. Assume that the portfolio weights are positive:

(1 ) Can the return on a portfolio ever be less than the smallest return on an individual security in the portfolio?
(2 ) Can the risk (variance) of a portfolio ever be less than the smallest risk (variance) of an individual security in the portfolio?
A) No. Yes.
B) No. No.
C) Yes. No.
D) Yes. Yes.


A

Business

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