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 to a portfolio typically increases the portfolio's overall risk, leading to higher volatility of returns.

A Stock That Is Considered to Be a Positive Risk