Which of the following statements regarding risk is (are) correct?
I. A portfolio of two negatively correlated assets has less risk than either of the individual assets, and risk could be further reduced to 0 or below.
II. There is no case where creating a portfolio of assets will result in greater risk than that of the riskiest asset included in the portfolio.
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.

Question

Which of the following statements regarding risk is (are) correct? 
I. A portfolio of two negatively correlated assets has less risk than either of the individual assets, and risk could be further reduced to 0 or below.
II. There is no case where creating a portfolio of assets will result in greater risk than that of the riskiest asset included in the portfolio.
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.

Quizplus · Accepted Answer

The Answer of Which of the following statements regarding risk is (are) correct? 
I. A portfolio of two negatively correlated assets has less risk than either of the individual assets, and risk could be further reduced to 0 or below.
II. There is no case where creating a portfolio of assets will result in greater risk than that of the riskiest asset included in the portfolio.
A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.

Which of the Following Statements Regarding Risk Is (Are) Correct