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Which of the following portfolios has the least reduction of risk...

This question belongs to Commerce Financial Management
Financial Management
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Which of the following portfolios has the least reduction of risk?

Answer & Solution
Correct Answer: Option A
A portfolio with securities all having positive correlation with each other has the least reduction of risk. A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds.
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2 Comments
Riyas Muhammed
Riyas Muhammed 5 years ago
It's wrong I think, negative correlation is the correct answer
Shilpa Batra
Shilpa Batra 8 years ago
if there is positive relation then all securities moves in same direction then how we can get least risk portfolio...now this time give explaination
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