To Reduce Risk as Much as Possible, You Should Combine

question 51

Multiple Choice

To reduce risk as much as possible, you should combine assets which have one of the following correlation relationships?

• A)strong positive
• B)slightly positive
• C)slightly negative
• D)strongly negative
• E)zero

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Definitions:

Product Mix

The variety of products a company offers for sale to meet market demand and enhance profitability.

Celebrity Endorsement

A marketing strategy where famous personalities are used to promote a product, service, or brand, leveraging their fame and influence.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, establishing a market balance.

Equilibrium Quantity

The quantity of goods supplied that is equal to the quantity of goods demanded at the market equilibrium price.