Which of the Following Is Correct

question 4

Multiple Choice

Which of the following is correct?

• A) Investors can reduce the risk in their portfolio by investing in international stocks since they tend to have low correlation with our own stock market.
• B) Combining both stocks and bonds will likely reduce risk in a portfolio because the two assets have low correlation.
• C) Your optimal portfolio is an efficient portfolio with your desired risk level.
• D) All of these choices are correct.

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Definitions:

Saturation Level

The maximum extent or degree to which something can be absorbed or saturated.

Negative Afterimage

A visual phenomenon where an image continues to appear in one's vision after the exposure to the original image has ceased, typically in complementary colors.

Blue-Colored Square

A geometric shape with four equal sides, fully enclosed, and filled with the color blue.

Red-Colored Square

A geometric figure with four equal sides and angles, distinguished by its red pigmentation or shade.