If Two Events Are Positively Correlated but NOT Perfectly Correlated

question 101

Multiple Choice

If two events are positively correlated but NOT perfectly correlated, then

• A)diversification is not necessary since there is no risk.
• B)diversification eliminates all risk.
• C)diversification does not reduce risk at all.
• D)diversification can reduce risk.

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Definitions:

Slavery

A system where individuals are owned by others, deprived of personal freedom and forced to perform labor or services without consent.

Minimum Wage

The lowest wage permitted by law or by a special agreement that can be paid to an employee.

Wages

Compensation or earnings paid to an employee by an employer based on the hours worked or the output produced.

Appeal to Force

A logical fallacy where a conclusion is supported by a threat or use of force, rather than by evidence or reasoning.