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Author Question: Two assets have a coefficient of correlation of -.4. Asset A has a standard deviation of 20% and ... (Read 30 times)

ega16

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Two assets have a coefficient of correlation of -.4. Asset A has a standard deviation of 20% and asset B has a standard deviation of 40%. Relative to holding a portfolio consisting of 100% of Asset B, what happens to risk if you combine these assets into a 50-50 weighted portfolio?
◦ Combining these assets will increase risk.
◦ Combining these assets will have no effect on risk.
◦ Combining these assets may either raise or lower risk.
◦ Combining these assets will reduce risk.


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Marked as best answer by ega16 on Mar 29, 2022

SphnxKickin

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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ega16

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Reply 2 on: Mar 29, 2022
Gracias!


ghepp

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Reply 3 on: Yesterday
Excellent

 

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