The ____ the correlation in project returns is over time, the ____ will be the project portfolio risk as measured by the portfolio variance.
A) lower; lower
B) higher; lower
C) lower; higher
D) none of the above

Question

Quizplus · Accepted Answer

Lower correlation in project returns over time leads to lower portfolio risk, as diversification benefits increase, reducing the portfolio variance.

The ____ the Correlation in Project Returns Is Over Time