For a Security to Help Diversify a Portfolio, the Asset​

question 13

Multiple Choice

For a security to help diversify a portfolio, the asset​

• A) ​must generate a greater return than the average return on the portfolio
• B) should not be sensitive to changes in security prices​
• C) ​should have a return that is negatively correlated with the return on other securities in the portfolio
• D) ​must be a debt instrument if the portfolio consists primarily of stocks

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Definitions:

Coordinating

The process of aligning activities, resources, and schedules to achieve goals efficiently and effectively.

Effective Leadership

The ability of a leader to inspire, influence, and guide individuals or teams to achieve organizational goals with efficiency and integrity.

Leader Behavior

The actions and activities undertaken by a leader in the direction of guiding, influencing, and overseeing a group or organization.

Subordinates

Individuals in a lower position or rank within an organizational hierarchy who report to someone above them.