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:

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A global conflict that took place from 1939 to 1945, involving most of the world's nations and resulting in significant geopolitical changes.

Wartime Cooperation

Collaboration between countries, organizations, or groups during a time of war to achieve common goals or combat a common enemy.

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