asked 58.1k views
0 votes
As the correlation between assets falls... Group of answer choices portfolio variance is not affected by correlation portfolio variance falls portfolio variance rises

1 Answer

2 votes

Answer:

The correct answer is C) Portfolio Variance rises.

Step-by-step explanation:

The association between two assets reflects the degree to which both assets are related. As the correlation between two assets decreases, the variation in portfolios increases.

Investment portfolios can be protected with the creative use of Correlation Diversification .

The less correlated assets are, the less risky an investment portfolio is.

Cheers!

answered
User Ultracrepidarian
by
8.5k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.

Categories