Diversification Is Most Effective When Security Returns Are ________

question 89

Multiple Choice

Diversification is most effective when security returns are ________.

• A) high
• B) negatively correlated
• C) positively correlated
• D) uncorrelated

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Definitions:

Biological Model

A perspective in psychiatry and psychology that attributes psychological disorders to biological factors, such as genetic inheritance, neurotransmitter levels, and brain structure anomalies.

Psychological Disorders

Mental disorders characterized by patterns of behavior or thought that are significantly deviant, distressing, or dysfunctional.

Biological Model

A model in psychology that explains psychological phenomena in terms of biological factors, such as genetic influence, brain structures, and neurochemical processes.

Mental Illness

A wide range of mental health conditions that affect mood, thinking, and behavior, leading to distress or impairment in social, occupational, or other important activities.