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Author Question: The creation of a portfolio by combining two assets having perfectly positively correlated returns ... (Read 73 times)

ENagel

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on: Jul 10, 2018
The creation of a portfolio by combining two assets having perfectly positively correlated returns cannot reduce the portfolio's overall risk below the risk of the least risky asset.
 
  Indicate whether the statement is true or false

Question 2

The risk of a portfolio containing international stocks generally contains less nondiversifiable risk than one that contains only domestic stocks.
 
  Indicate whether the statement is true or false


LVPMS

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Reply #1 on: Jul 10, 2018
Answer to Question 1

TRUE

Answer to Question 2

TRUE


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