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

[amp_mcq option1=”A portfolio with securities all having positive correlation with each other” option2=”A portfolio with securities all has zero correlation with each other” option3=”A portfolio with securities all having negative correlation with each other” option4=”A portfolio with securities all has skewed correlation with each other” correct=”option1″]

Detailed SolutionWhich of the following portfolios has the least reduction of risk?