Question
If an investor combines two securities that are perfectly positively correlated, the risk of the resulting portfolio will be: a. Greater than the risk of
If an investor combines two securities that are perfectly positively correlated, the risk of the resulting portfolio will be:
| a. | Greater than the risk of either security. | |
| b. | Less than the risk of either security. | |
| c. | The same as the risk of either security. | |
| d. | Less than it would be if the stocks were not perfectly positively correlated. |
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Finance
Authors: Ehsan Nikbakht, A A Groppelli
6th Edition
0764147595, 9780764147593
