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Commerce · Q77

Business Finance

Graduate and Post Graduate · Commerce · question 77

Q77

Risk of a portfolio can be minimised by which one of the following?

A.
Combining two securities having perfect positive correlation in their expected returns
B.
Combining two securities having perfect negative correlation in their expected returns
Answer
C.
Combining two securities having partially positive correlation in their expected returns
D.
Combining two securities having partially negative correlation in their expected returns

Answer: Option B

Solution

Answer: Option B
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