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Questions and Answers
By combining assets, it is possible to:
By combining assets, it is possible to:
- Increase risk and return simultaneously
- Increase risk and decrease return simultaneously
- Decrease risk and return simultaneously
- Decrease risk and increase return simultaneously (correct)
What is the benefit of combining assets?
What is the benefit of combining assets?
- Increase risk and return simultaneously
- Decrease risk and return simultaneously (correct)
- Increase risk and decrease return simultaneously
- Decrease risk and increase return simultaneously
What happens to risk and return when assets are combined?
What happens to risk and return when assets are combined?
- Risk increases and return decreases (correct)
- They both increase
- They both decrease
- Risk decreases and return increases
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