Other Things Equal,diversification Is Most Effective When

question 8

Multiple Choice

Other things equal,diversification is most effective when

• A) securities' returns are uncorrelated.
• B) securities' returns are positively correlated.
• C) securities' returns are high.
• D) securities' returns are negatively correlated.
• E) both securities' returns are positively correlated and securities' returns are high.

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Definitions:

Formal Statement

A structured, written document that presents financial or other significant data in a systematic format.