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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 83 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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ega16

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Reply 2 on: Mar 29, 2022
Gracias!


smrtceo

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Reply 3 on: Yesterday
:D TYSM

 

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