SOLUTION: Please help me solve this question. Does a portfolio formed from the mix of three investments have more risk (variance) than a portfolio formed from two?

Question 1171706: Please help me solve this question.
Does a portfolio formed from the mix of three investments have more risk (variance) than a portfolio formed from two?

Answer by Solver92311(821) (Show Source): You can put this solution on YOUR website!

A portfolio consisting of three very low-risk securities would have less variance than a portfolio consisting of two high-risk securities. There are situations where there would be no statistical difference, and there are situations where three would be riskier than two. The bottom line: the answer is "not necessarily true or false".

John

My calculator said it, I believe it, that settles it

From
I > Ø

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