In General,which Stocks Should Be Combined into a Portfolio If

question 59

Multiple Choice

In general,which stocks should be combined into a portfolio if the goal is the greatest reduction possible in overall portfolio risk?

• A) Stocks with returns that are positively correlated
• B) Stocks with returns that are not correlated
• C) Stocks with returns that have the highest specific risk
• D) Stocks that have the highest expected returns

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