To obtain the maximum reduction in risk, an investor should combine assets that
A) are negatively correlated.
B) are uncorrelated.
C) have a correlation coefficient of positive one.
D) have a correlation coefficient of negative one.

Question

Quizplus · Accepted Answer

The Answer of To obtain the maximum reduction in risk, an investor should combine assets that
A) are negatively correlated.
B) are uncorrelated.
C) have a correlation coefficient of positive one.
D) have a correlation coefficient of negative one.

To Obtain the Maximum Reduction in Risk, an Investor Should