In General, Which Stocks Should Be Combined in a Portfolio

question 43

Multiple Choice

In general, which stocks should be combined in a portfolio, if the goal is to reduce overall risk?

• A)stocks with returns that are positively correlated.
• B)stocks with returns that are negatively correlated.
• C)stocks with returns that are not correlated.
• D)stocks that have the highest expected returns.

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Definitions:

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A therapy based on the principles of behaviorism used to improve specific behaviors while reducing unwanted ones through reinforcement strategies.