Which of the Following Statements Is Most Correct

question 125

Multiple Choice

Which of the following statements is most correct?

• A) Combining positively correlated assets having the same expected return results in a portfolio with the same level of expected return and a lower level of risk.
• B) Combining negatively correlated assets having the same expected return results in a portfolio with the same level of expected return and a lower level of risk.
• C) Combining positively correlated assets having the same expected return results in a portfolio with a lower level of expected return and a lower level of risk.
• D) Combining negatively correlated assets having the same expected return results in a portfolio with a lower level of expected return and a lower level of risk.