Which of the Following Combinations Would Result in a Portfolio

question 17

Multiple Choice

Which of the following combinations would result in a portfolio with the lowest risk?

• A)Two stocks which are perfectly negatively correlated
• B)Two stock which are uncorrelated
• C)Two stocks which are perfectly correlated with the market
• D)Two stocks with perfect positive correlation

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Definitions:

Informal Grapevine

An unofficial channel of communication within an organization, spreading information quickly but sometimes inaccurately through word-of-mouth.

Workspace Design

Workspace design involves arranging physical space and environment to improve efficiency, productivity, and well-being in the workplace.

Social Interaction

The process by which individuals act and react in relation to others, influencing and shaping relationships, communication, and societal norms.

Need for Privacy

The individual desire for solitude and space where one can be free from public view or disturbance.