When combining stocks in a portfolio, the greatest reduction in overall risk of the portfolio will...
When combining stocks in a portfolio, the greatest reduction in overall risk of the portfolio will occur when:
(choose only one answer)
Group of answer choices
A - the two stocks are negatively correlated.
B - the two stocks are positively correlated.
C - the two stocks are uncorrelated.
Homework Answers
Option A is correct
the two stocks are negatively correlated.
When stocks are negatively correlated, standard deviation will reduce.
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When combining stocks in a portfolio, the greatest reduction in
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