To Achieve Maximum Diversification Benefits, an Investor Should Invest in Projects

question 9

True/False

To achieve maximum diversification benefits, an investor should invest in projects which are highly correlated.

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Definitions:

Parallel

An analogy or comparison between two things based on their being alike in some way; in mathematics and geometry, describing lines or planes that never meet, regardless of how far they are extended.

Prosocial

Pertaining to behaviors that are positive, helpful, and intended to promote social acceptance and friendship.

Altruism

Selfless concern for the well-being of others, often leading to helping behaviors without expectation of personal benefit.

Empathy

The ability to understand and share the feelings of another person.