Combining negatively correlated assets having the same expected return results in a portfolio with__________level of expected return and __________level of risk.
A) the same; a higher
B) the same; a lower
C) a higher; a lower
D) a lower; a higher

Question

Quizplus · Accepted Answer

Combining negatively correlated assets with the same expected return results in a portfolio with the same expected return but a lower level of risk due to diversification benefits.

Combining Negatively Correlated Assets Having the Same Expected Return Results