Which of the Following Statements Is FALSE

question 74

Multiple Choice

Which of the following statements is FALSE?

• A) The maximum benefits to diversification between securities occurs when they are perfectly positively correlated.
• B) The maximum benefits to diversification between securities occurs when they are perfectly negatively correlated.
• C) There is some benefit to diversification when the correlation between securities is 0.0.
• D) There is some benefit to diversification when the correlation between securities is greater than 0.0 but less than 1.0.

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