A Portfolio Would Offer Maximum Diversification Benefits When _____

question 50

Multiple Choice

A portfolio would offer maximum diversification benefits when _____.

• A) the constituent stocks have a coefficient of correlation of 0
• B) the constituent stocks have a coefficient of correlation of +1
• C) the constituent stocks have a coefficient of correlation of -1
• D) the constituent stocks have a coefficient of variation of 0
• E) the constituent stocks have a coefficient of variation of -1

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Definitions:

Network

A group or system of interconnected people or organizations.

Informational E-mail

An email designed to convey data, facts, or knowledge about specific subjects without necessitating a direct response.

Enthusiasm

is a feeling of energetic interest in a particular subject or activity and an eagerness to be involved in it.

ALL-CAPS

Writing or printing in capital letters for emphasis or to grab attention.