It is not possible to construct a portfolio with zero


Determine and briefly explain (in no more than four sentences) whether the following statements are true or false:

a) “It is NOT possible to construct a portfolio with zero variance of expected returns from assets whose expected returns have positive variance individually.”

(b) “All else equal, the greater the subscription price of shares in a rights offering, the smaller the number of rights needed to buy one new share.”

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Financial Management: It is not possible to construct a portfolio with zero
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