n NISM Certifications
XXI NISM Series XXI-A
Medium

How can a portfolio be constructed with a risk of '0'?

Practice question from NISM XXI A for PMS - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    A portfolio with a risk of '0' can be constructed if there are only two securities in the portfolio

  2. B

    A portfolio with a risk of '0' can be constructed when the returns of the two securities are perfectly negatively correlated

  3. C

    Only A

  4. D

    Only B

  5. Both A and B

    Correct answer

  6. F

    Neither A nor B

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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