Which of the Following Statements Is Correct

question 42

Multiple Choice

Which of the following statements is correct?

• A) Uncorrelated assets have a correlation of -1.0.
• B) Most common stocks are positively correlated with each other because they are impacted by the economic factors.
• C) We can typically add many stocks together to fully eliminate the market risk in a portfolio.
• D) None of these statements are correct.

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Definitions:

Concrete Operations

A stage in cognitive development, as described by Piaget, where children gain the ability to think logically about concrete, tangible objects and events.

Subjective Theory of Knowledge

The belief that knowledge and understanding are influenced by personal experiences, perspectives, and biases.

Evaluativist Theory

A theoretical approach that focuses on how individuals assess, judge, or evaluate phenomena in their environment.

Absolute Truth

A fact or principle that is believed to be universally valid, irrespective of context or situation.