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Which of the Following Is Correct Regarding a Portfolio with Negatively

Question 129

Multiple Choice

Which of the following is correct regarding a portfolio with negatively correlated assets?


A) Combining two negatively correlated assets into a portfolio will not reduce portfolio risk.
B) Combining two negatively correlated assets into a portfolio will reduce portfolio risk.
C) Combining two negatively correlated assets into a portfolio will increase portfolio risk.
D) Combining two negatively correlated assets into a portfolio will increase portfolio returns.

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