The Benefits of Portfolio Diversification Are Highest When the Individual

question 92

Multiple Choice

The benefits of portfolio diversification are highest when the individual securities have returns that:

• A) vary directly with the rest of the portfolio.
• B) vary proportionally with the rest of the portfolio.
• C) are less than perfectly correlated with the rest of the portfolio.
• D) are countercyclical.

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Definitions:

Social Audit

An evaluation method used to measure a company's social and environmental performance and impact.

Societal Marketing Programs

Marketing strategies focused not only on meeting the needs of consumers but also on benefiting society as a whole by considering the societal and environmental impact of products and practices.

Social Responsibility Programs

Initiatives undertaken by companies to operate in an ethical, sustainable, and environmentally friendly manner, often focusing on social welfare.

Company's Mission

A statement that describes the purpose and fundamental objectives of an organization, guiding its strategy, operations, and decision-making.