Which Statement Is NOT True Regarding Efficient Portfolios

question 107

Multiple Choice

Which statement is NOT true regarding efficient portfolios?

• A) Combining stocks that move together over time does not offer much risk reduction.
• B) Combining stocks that do not move together provides a lot of risk reduction.
• C) both a and b are NOT true
• D) none of the above are NOT true

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Definitions:

No Hope

Generally signifies a situation or mindset where there is a belief that no positive outcomes are possible.

Declaration of Independence

A foundational document adopted on July 4, 1776, by the Continental Congress, declaring the thirteen American colonies to be independent from British rule.

Sovereignty

The full right and power of a governing body to govern itself without any interference from outside sources or bodies.

Grievances

Complaints or protests, often against injustices or perceived wrongs, that can lead to demands for change or redress.