It Is Possible to Reduce Risk of the Portfolio by Adding

question 53

Multiple Choice

It is possible to reduce risk of the portfolio by adding a ________ risk investment if it is ________ correlated with other investments.

• A) high; negatively
• B) low; negatively
• C) high; positively
• D) low; positively

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Definitions:

Basic-Level Category

The most inclusive level within a hierarchy of categories that can be readily and consistently identified by people.

Sandwich

A food item typically consisting of vegetables, sliced cheese, or meat placed between slices of bread.

Scripted Order

A scripted order refers to a predetermined sequence of actions or events, often used in the context of routines, performances, or programming.