Nbspif asset a has a standard deviation of 2 and asset b, Financial Management

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Nbspif asset a has a standard deviation of 2 and asset b

True or false

1. If asset A has a standard deviation of .2 and asset B has a standard deviation of .2, then any portfolio that involves positive investment in both asset A and asset B will also have a standard deviation of .2.

2. For most firms, market value leverage is higher than book value leverage.

3. Since interest rates are currently very low, most newly issued corporate bonds are not callable.

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Financial Management: Nbspif asset a has a standard deviation of 2 and asset b

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Financial Management: Nbspif asset a has a standard deviation of 2 and asset b

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