Question
If an investor combines two securities that are not perfectly positively correlated: a. The return from the resulting portfolio will always be less than the
If an investor combines two securities that are not perfectly positively correlated:
a. The return from the resulting portfolio will always be less than the return from either security.
b. The return from the resulting portfolio will always be greater than the return from either security.
c. The risk of the resulting portfolio will always be greater than the risk of either security.
d. The risk of the resulting portfolio will always be less than it would be if the stocks were perfectly positively correlated.
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Foundations Of Finance
Authors: Arthur J. Keown, John H. Martin, J. William Petty
10th Edition
0135160618, 978-0135160619
