The Returns on Asset a Are Strongly,negatively Correlated with Asset

question 63

Multiple Choice

The returns on Asset A are strongly,negatively correlated with Asset B's returns;thus,holding the two assets together will

• A)significantly reduce portfolio risk.
• B)significantly increase portfolio risk.
• C)have little or no effect on portfolio risk.
• D)significantly reduce portfolio return.

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Definitions:

Deceit

An intentional misrepresentation or concealment of a material fact made to induce another to act to their detriment.

Private Nuisance

A disturbance or interference with an individual's enjoyment or use of their property, without any trespassing occurring.

Injunction

A legal order by a court that requires a party to do, or refrain from doing, certain acts.

Nuisance

An act, condition, or thing that is illegal because it interferes with the rights of others, specifically in terms of their comfort, health, or safety.