In Order to Diversify Risk an Investor Must Have Investments

question 12

Multiple Choice

In order to diversify risk an investor must have investments that have correlations with other investments in the portfolio that are

• A) low positive
• B) zero
• C) negative
• D) any of the above
• E) none of the above

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Definitions:

Personality Codes

Systems or schemes used to categorize individuals according to their personality traits or characteristics.

MMPI-II

The Minnesota Multiphasic Personality Inventory-2, a widely used standardized psychometric test of adult personality and psychopathology.

PAI

Personality Assessment Inventory, a psychological test addressing various aspects of a person's personality and psychopathology.

Validity Scales

Validity scales are tools within psychological tests used to assess the truthfulness and consistency of a test-taker's responses, aiming to identify potential misleading or deceptive answers.