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Solution Library
Relationship Between Assets When Standard Deviation Of Security Portfolios Reduces
Question
What relationship between 2 assets would we want to have if we wish to reduce the standard deviation of a 2 security portfolio?
A. A perfect positive correlation (corr = 1.0)
B. A perfect negative correlation (corr = -1.0)
C. Zero correlation (corr = 0.0)
D. Correlation does not affect risk in a portfolio sense.
Summary
The question belongs to Finance and it is about the relationship between 2 assets when we reduce standard deviation of 2 security portfolios.
Total Word Count 24
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