Examveda
Examveda

Risk of a portfolio can be minimised by which one of the following?

A. Combining two securities having perfect positive correlation in their expected returns

B. Combining two securities having perfect negative correlation in their expected returns

C. Combining two securities having partially positive correlation in their expected returns

D. Combining two securities having partially negative correlation in their expected returns

Answer: Option B


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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