Question 111 portfolio risk, correlation
All things remaining equal, the variance of a portfolio of two positively-weighted stocks rises as:
(a) The correlation between the stocks' returns rise.
(b) The correlation between the stocks' returns decline.
(c) The portfolio standard deviation declines.
(d) Both stocks' individual variances decline.
(e) Both stocks' individual standard deviations decline.
Copyright © 2014 Keith Woodward