Combining two assets having perfectly negative correlated returns will result in the creation of a portfolio with
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Question:
Combining two assets having perfectly negative correlated returns will result in the creation of a portfolio with an overall risk that______.
a. Stabilizes to a level between the asset with the higher risk and the asset with the lower risk
b. Remains unchanged
c. Increases to a level above that of either asset
d. Decreases to a level bellow that of either asset
Related Book For
Business Statistics
ISBN: 978-0321925831
3rd edition
Authors: Norean Sharpe, Richard Veaux, Paul Velleman
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