In General, the Lower (Less Positive and More Negative) the Correlation

question 4

Multiple Choice

In general, the lower (less positive and more negative) the correlation between asset returns,

• A) the lower the potential profit.
• B) the less the assets have to be monitored.
• C) the less the potential diversification of risk.
• D) the greater the potential diversification of risk.

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Definitions:

Physically Attractive

Pertains to features or qualities that are aesthetically pleasing or beautiful to the majority.

Testosterone

A steroid hormone that plays a key role in the development of male reproductive tissues, as well as promoting secondary sexual characteristics such as increased muscle and bone mass, and the growth of body hair.

Aggression

Behavior intended to harm or intimidate others, which can be physical or verbal.

Scapegoating

Displacing aggression onto members of minority groups or other innocent targets not responsible for the frustrating situation.