Combining Two Stocks to Form a Portfolio Offers Maximum Diversification

question 20

Multiple Choice

Combining two stocks to form a portfolio offers maximum diversification benefits when _____. 

• A)the stocks have a correlation coefficient equal to 0
• B)the stocks have a correlation coefficient equal to +1
• C)the stocks have a correlation coefficient equal to -1
• D)the both stocks have a coefficients of variation of 0
• E)both stocks have a coefficients of variation of -1

Understand the concepts and distinctions among monophyletic, paraphyletic, and polyphyletic groupings.

Recognize and explain the process and significance of gene transfer mechanisms, including horizontal and vertical gene transfer.

Distinguish between fundamental evolutionary divergences such as prokaryotes vs. eukaryotes.

Identify the characteristics of different taxonomic classes and the basis for their classification.

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Definitions:

Diagram

A simplified drawing or chart that shows the structure or explains the operation of something, often used in educational and technical contexts.

Arrows

Symbols used to indicate direction, represent logical relations, or signify movement from one position to another.

Independent Premise

An assertion in an argument that stands alone and does not require support from another premise to be understood or validated.

Argument

A connected series of statements intended to establish a proposition or persuade someone of a particular point of view.