The ____ Correlated the Returns from Two Securities Are, the ____

question 27

Multiple Choice

The ____ correlated the returns from two securities are, the ____ will be the portfolio effects of risk reduction.

• A) more positively; greater
• B) greater; greater
• C) less positively; greater
• D) lower; lower

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Definitions:

U.S. Exchanges

Marketplaces in the United States where securities, commodities, derivatives, and other financial instruments are traded.

U.S Companies

Businesses or corporations that are registered and operate within the United States.

Outstanding Checks

Checks that have been written and recorded in the issuer's ledger but have not yet been cleared by the bank.

Checks Written

The act of writing a check to settle a transaction, implicating the withdrawal of the specified amount from the payer’s bank account.