In a Two Stock Portfolio,if the Correlation Coefficient Between Two

question 74

Multiple Choice

In a two stock portfolio,if the correlation coefficient between two stocks were to decrease over time,everything else remaining constant,the portfolio's risk would

• A) Decrease.
• B) Remain constant.
• C) Increase.
• D) Fluctuate positively and negatively.
• E) Be a negative value.

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Definitions:

Specialty Products

Products that are regarded as unique or high-value, often requiring special effort to find or purchase.

Supplies

Goods or materials provided or available for use, particularly in the context of business operations, production processes, or personal needs.

Unsought Products

Items that consumers do not actively seek out to purchase, often requiring significant marketing effort to sell.

Specialty Products

High-value or unique items that consumers purchase after extensive searching and comparison, often including luxury goods or niche market items.