The portfolio expected return of two investments:

A) will be higher when the covariance is zero.
B) will be higher when the covariance is negative.
C) will be higher when the covariance is positive.
D) does not depend on the covariance.

Portfolio Expected Return

The weighted average of the expected returns on the assets included in a portfolio, representing the overall expected profit or loss.

Covariance

A statistical measure that indicates the extent to which two variables change together, signaling the direction of their linear relationship.

Investments

The process of distributing funds with the aim of earning returns or profits.