Author Question: Combining two assets having perfectly negatively correlated returns will result in the creation of a ... (Read 49 times)

Marty · **on:** Jul 10, 2018

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