The Risk of a Portfolio Consisting of Two Uncorrelated Assets

question 25

Multiple Choice

The risk of a portfolio consisting of two uncorrelated assets will be

• A) equal to zero.
• B) greater than the risk of the least risky asset but less than the risk level of the more risky asset.
• C) greater than zero but less than the risk of the more risky asset.
• D) equal to the average of the risk level of the two assets.

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Definitions:

Creative Subsystem

Part of a system or process involved in generating novel ideas and solutions within a particular context or organization.

Culture Production System

The organized network of institutions and processes that produce cultural products such as music, literature, and art.

Cultural Gatekeeper

Individuals or organizations that have the power to control the flow of information and cultural materials to the public.

Creative Subsystem Member

An individual within an organization who is specifically involved in the creation and development of ideas, products, or advertising, contributing to the innovative output of the entity.