In Order to Diversify Risk an Investor Must Have Investments

question 12

Multiple Choice

In order to diversify risk an investor must have investments that have correlations with other investments in the portfolio that are

• A) low positive
• B) zero
• C) negative
• D) any of the above
• E) none of the above

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Definitions:

Antiviral Agents

Medications used to treat viral infections by inhibiting the development or replication of the virus.

Saving Rate

The proportion of disposable income that is saved by individuals or households in an economy rather than spent.

Income Growth

An increase in the amount of money earned by individuals, households, or a country over time.

Productivity Growth

An increase in the efficiency of production, often measured by the ratio of output to inputs in the production process over time.