Multiple Choice
Which of the following statements regarding risk is/are correct?
I. A portfolio of two negatively correlated assets has less risk than either of the individual assets and risk could be further reduced to 0 or below.
II. There is no case where creating a portfolio of assets will result in greater risk than that of the riskiest asset included in the portfolio.
A) I only
B) II only
C) Both I and II
D) Neither I nor II
Correct Answer:
Verified
Correct Answer:
Verified
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