A stock that is considered to be a positive risk asset is added to a portfolio.As a result, the portfolio will:
A)Have lower average returns
B)Have a lower variance of returns
C)Have a higher volatility of returns
D)Have a lower correlation of returns with stock market indexes

Question

Quizplus · Accepted Answer

Adding a positive risk asset typically increases the portfolio's volatility because it introduces additional risk.

A Stock That Is Considered to Be a Positive Risk