For Purposes of Maximum Portfolio Diversification,which of the Following Would

question 18

Multiple Choice

For purposes of maximum portfolio diversification,which of the following would provide the greatest diversification?

• A)Security A with a correlation coefficient of -0.0
• B)Security B with a correlation coefficient of 0.0
• C)Security C with a correlation coefficient of -0.50
• D)Security D with a correlation coefficient of 0.50

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Definitions:

Strategy Implementation

The practice of executing plans and strategies to achieve the desired goals and objectives of an organization.

Big Data

Large and complex data sets that traditional data processing software cannot manage effectively, often involving the collection, storage, analysis, and visualization of data.

Artificial Intelligence

The simulation of human intelligence in machines that are programmed to think and learn like humans.

Data Security

The protective measures and protocols put in place to safeguard and protect data from unauthorized access, use, disclosure, disruption, modification, or destruction.