Question: In general, when the correlation coefficient between the returns on two securities is __________, the risk of the portfolio is __________ the weighted average of
In general, when the correlation coefficient between the returns on two securities is __________, the risk of the portfolio is __________ the weighted average of the total risk of the two individual securities.
A) Less than +1.0; greater than
B) None of the choices are correct
C) Equal to +1.0; equal to
D) Greater than -1.0; less than
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