Consider two portfolios consisting of two stocks each. The portfolios are identical in every way (e. g., the proportion of money invested in each stock, the expected returns of the stocks, and the variances of the stocks), except that in the first portfolio (call it A) the returns of the two stocks are negatively related, while in the second portfolio (B) they are positively related. Which of the following statements about the variances of the portfolios would be true?

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business.true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.