Which of the Following Portfolios Would Have No Diversification Benefits

question 44

Multiple Choice

Which of the following portfolios would have no diversification benefits?

• A)A portfolio consisting of two perfectly positively correlated stocks
• B)A portfolio consisting of two perfectly negatively correlated stocks
• C)A portfolio consisting of two uncorrelated stocks
• D)A portfolio consisting of two stocks with the same standard deviation of returns
• E)A portfolio consisting of two stocks with the same beta coefficient

Analyze the relationship between customer satisfaction, quality goals, and organizational performance.

Discern the importance of employee welfare goals in creating a positive work environment and contributing to overall business success.

Understand market share as a critical indicator of company performance and its calculation.

Comprehend the role of marketing dashboards in monitoring and managing marketing performance.

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Definitions:

Nominal Rate

The advertised or stated interest rate on a loan or bond, not adjusted for inflation.

Inflation Rate

The tempo at which the price level for standard goods and services heightens, thereby reducing the purchasing effectiveness.

Canadian Treasury Bill

Short-term government securities issued by Canada, offering a return with low-risk investment.

Market Return

The total return on investment from a particular market or index, including dividends and capital gains.