Which of the Following Could Reduce the Risk on a Portfolio

question 15

Multiple Choice

Which of the following could reduce the risk on a portfolio to zero?

• A) Appropriate allocation of funds where there is perfectly negative correlation
• B) Any allocation of funds provided there is perfectly negative correlation.
• C) Appropriate allocation of funds where there is perfectly positive correlation
• D) Appropriate allocation of funds provided there is negative correlation.

---

Definitions:

Entire Report

A comprehensive document that provides detailed information on a specific topic, including analysis, findings, and conclusions.

Caption

A brief text description or explanation accompanying an image or illustration.

Ideas

Concepts, thoughts, or opinions generated in the mind as a result of creative thinking or problem-solving.

Giving Credit

The act of acknowledging someone's contribution or work in the creation or development of something, often seen in academic, professional, or creative contexts.