You Have a Portfolio of Two Risky Shares Which Turns

question 104

Multiple Choice

You have a portfolio of two risky shares which turns out to have no diversification benefit.The reason you have no diversification is the returns:

• A)are too small.
• B)move perfectly opposite of one another.
• C)are too large to offset.
• D)move perfectly with one another.
• E)are completely unrelated to one another.

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Definitions:

Primates

An order of mammals that includes humans, apes, monkeys, and prosimians, characterized by opposable thumbs, high intelligence, and complex behaviors.

Arboreal Primate

A category of primates adapted to living in trees, characterized by features such as grasping hands and feet for climbing.

Chimpanzee Females

Female individuals of the chimpanzee species, known for their complex social structures and behaviors within communities.

Biologically Speaking

Pertaining to the aspects or observations derived from the science of biology, concerning living organisms.