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
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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
