Question
You have 4 risky assets that are positively correlated with each other, but not perfectly correlated. Each of the 4 assets have an expected return
You have 4 risky assets that are positively correlated with each other, but not perfectly correlated. Each of the 4 assets have an expected return of 15% and a standard deviation of 20%. Which of the following statements is true if you build a portfolio with equal weights of all 4 assets?
a. The Portfolios expected return = 15% and the standard deviation will be < 20%
b. The Portfolios expected return < 15% and the standard deviation will be > 20%
c. The Portfolios expected return = 15% and the standard deviation will be = 20%
d. The Portfolios expected return < 15% and the standard deviation will be < 20%
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