Examveda

A portfolio having two risky securities can be turned risk less, if

A. the correlation ranges between zero and one

B. the securities are completely positively correlated

C. the securities are completely negatively correlated

D. None of the above

Answer: Option C


This Question Belongs to Commerce >> Business Finance

Join The Discussion

Related Questions on Business Finance

Match List-I with List-II and select the correct answer:

List-I List-II
a. Modigliani Miller approach 1. Commercial papers
b. Net operating income approach 2. Working capital management
c. Short-term money market instrument 3. Capital structure
d. Factoring 4. Arbitrage

A. a-4, b-3, c-1, d-2

B. a-3, b-4, c-1, d-2

C. a-2, b-3, c-1, d-4

D. a-3, b-2, c-4, d-1