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Commerce Short Question | Gkseries

Q.

Risk of a portfolio can be minimised by which one of the following ?

[A] Combining two securities having perfect positive correlation in their expected returns.
[B] Combining two securities having perfect negative correlation in their expected returns.
[C] Combining two securities having partially positive correlation in their expected returns.
[D] Combining two securities having partially negative correlation in their expected returns.
Answer & Explanation

Answer: Combining two securities having perfect negative correlation in their expected returns.

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