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:

Marketing Mix Elements

The components of a marketing strategy, traditionally identified as product, price, place, and promotion, used to meet the needs of a target market.

Dependent Variables

In research, these are variables that are expected to change as a result of changes in the independent variables.

Independent Variable

The variable in an experimental setting that is manipulated to observe its effect on a dependent variable.

Marketing Action

Specific tasks undertaken by a company to promote and sell its products or services to its target market.