Gains from Portfolio Diversification Are Largest When

question 18

Multiple Choice

Gains from portfolio diversification are largest when

• A)The securities are perfectly positively correlated
• B)The securities are not correlated
• C)The securities are perfectly negatively correlated
• D)Need more information

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Definitions:

Positive Emotions

Feelings that are pleasant or desirable, such as joy, gratitude, love, and hope.

Positive Meaning

The significance or value attributed to something that is considered beneficial, encouraging, or desirable.

Gratitude

Gratitude is the feeling of appreciation or thanks towards people, situations, or experiences that contribute positively to one’s life.

Negative Emotions

Feelings that are generally considered to be harmful or unpleasant, such as sadness, anger, and fear, which can impact mental health and relationships.