Combining two assets having perfectly negatively correlated ...

[Marty]

Combining two assets having perfectly negatively correlated returns will result in the creation of a portfolio with an overall risk that ________.
 
  A) remains unchanged
  B) decreases to a level below that of either asset
  C) increases to a level above that of either asset
  D) stabilizes to a level between the asset with the higher risk and the asset with the lower risk

Question 2

The annualized NPV of Project A is ________. (See Table 11.11 )
 
  A) 22,674
  B) 12,947
  C) 38,227
  D) 21,828

[swimkari]

Answer to Question 1

B

Answer to Question 2

A

[Marty]

Excellent

[patma1981]

TYSM