If Two Events Are Perfectly Positively Correlated,then

question 9

Multiple Choice

If two events are perfectly positively correlated,then

• A) diversification is not necessary since there is no risk.
• B) diversification eliminates all risk.
• C) diversification does not reduce risk at all.
• D) diversification only cuts the risk in half.

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Definitions:

Element

is a substance that cannot be broken down into simpler substances by chemical means, consisting of atoms with the same number of protons.

Proton

A subatomic particle found in the nucleus of an atom, carrying a positive electric charge and contributing to the atomic number and mass of the atom.

Neutron

A subatomic particle found in the nucleus of an atom that has no electrical charge and a mass slightly larger than that of a proton.

Medial

Positioned towards the midline of the body.