Which of the Following Statements Is Correct

question 29

Multiple Choice

Which of the following statements is correct?

• A)Uncorrelated assets have a correlation of -1.0.
• B)Most common stocks is positively correlated with each other because they is impacted by the economic factors.
• C)We can typically add many stocks together to fully eliminate the market risk in a portfolio.
• D)None of these statements are correct.

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Definitions:

Securities

Financial instruments that represent ownership positions in corporations (stock), creditor relationships with governmental bodies or corporations (bonds), or rights to ownership as represented by an option.

Rights Offering

A method by which companies raise additional capital by giving existing shareholders the right to subscribe to new shares at a discount.

Actual Value

The true or market value of an asset, not influenced by any external conditions, often used in financial and appraisal contexts.