Which of the Following Statements Regarding Risk Is (Are) Correct

question 72

Multiple Choice

Which of the following statements regarding risk is (are) correct?
I. A portfolio of two negatively correlated assets has less risk than either of the individual assets, and risk could be further reduced to 0 or below.
II. There is no case where creating a portfolio of assets will result in greater risk than that of the riskiest asset included in the portfolio.

• A) Only statement I is correct.
• B) Only statement II is correct.
• C) Both statements I and II are correct.
• D) Neither statement I nor II is correct.

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Definitions:

Workplace Harassment

Inappropriate conduct or behavior in a work environment that creates an intimidating, hostile, or offensive workplace.

Persuade Audience

The act of convincing listeners or viewers to view a situation from a specific perspective or to adopt a particular action.

Deductive Reasoning

Reasoning from a general statement or principle to reach a specific conclusion.

Task Analysis

involves breaking down a task into its component steps or actions to better understand, evaluate, and improve the efficiency or effectiveness of performing that task.