For Purposes of Maximum Portfolio Diversification, Which for the Following

question 106

Multiple Choice

For purposes of maximum portfolio diversification, which for 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:

Marijuana Use

The act of consuming marijuana, a psychoactive drug derived from the Cannabis plant, which can have various effects on mental and physical health.

Phobias

Intense, irrational fears of specific objects or situations that pose little or no actual danger.

Psychedelic Drug

Substances that alter perception, mood, and thought patterns, often resulting in visual hallucinations and profound shifts in consciousness.

LSD

Lysergic acid diethylamide, a powerful hallucinogenic drug that alters perception, mood, and a variety of cognitive processes.