Which of the Following Statements Is Correct

question 12

Multiple Choice

Which of the following statements is correct?

• A) Uncorrelated assets have a correlation of −1.0.
• B) Most common stocks are positively correlated with each other because they are impacted by the same economic factors.
• C) We can typically add many stocks together to fully eliminate the market risk in a portfolio.
• D) None of these choices are correct.

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