If Two Assets Having Perfectly Negatively Correlated Returns Are Combined

question 144

Multiple Choice

If two assets having perfectly negatively correlated returns are combined in a portfolio,then some combination of those two assets will ________.

• A)have more risk than either asset does on its own
• B)have no risk at all
• C)have a higher return than either asset does on its own
• D)have a lower return than either asset does on its own

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