Combining Negatively Correlated Assets Having the Same Expected Return Results

question 150

Multiple Choice

Combining negatively correlated assets having the same expected return results in a portfolio with ________ level of expected return and ________ level of risk.

• A) a higher; a lower
• B) the same; a higher
• C) the same; a lower
• D) a lower; a higher

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Definitions:

Brain Circuits

Networks of interconnected neurons in the brain that process and transmit information, playing a crucial role in functions such as thought, emotions, and motor control.

Threshold

The point of intensity at which a stimulus begins to produce a sensation or elicit a response, marking the limit between the absence and the beginning of a perception.

Membrane Potential

The difference in electric potential between the interior and the exterior of a biological cell.

Action Potential

A rapid change in electrical potential across a cell's membrane that occurs when a neuron sends information down an axon.