Question

Projects that are negatively correlated

(a) reduce the standard deviation of returns for the firm.
(b) increase the possible losses of the firm.
(c) are generally in the same industry.
(d) none of these options are correct.

Answer 1

reduce the standard deviation of returns for the firm.

Step-by-step explanation:

Projects that are negatively correlated

reduce the standard deviation of returns for the firm.