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Commerce · Q191

Business Finance

Graduate and Post Graduate · Commerce · question 191

Q191

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

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

Answer: Option B

Solution

Answer: Option B
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