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:

Exam Grades

Scores or marks received by students on academic tests, indicating their performance level.

Probability

An assessment of the probability that a certain event will happen.

Function

A relationship or rule that defines how one variable's values are determined by another variable or other variables.

Standard Deviation

A statistic that measures the dispersion or variation of a dataset relative to its mean, indicating how spread out the data points are.