Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. which of the following is true of portfolio divers

Which of the following is true of portfolio diversification? A diversified portfolio containing...

60.1K

Verified Solution

Question

Finance

Which of the following is true of portfolio diversification?
A diversified portfolio containing negatively correlated investments has a higher variance than a portfolio containing a single asset type.
A diversified portfolio containing negatively correlated investments has a lower variance than a portfolio containing a single asset type.
A diversified portfolio containing positively correlated investments has a lower variance than a portfolio containing a single asset type.
A diversified portfolio containing positively correlated investments has a higher variance than a portfolio containing a single asset type.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students