Which of the Following Statements Is True in the Context

question 62

Multiple Choice

Which of the following statements is true in the context of diversification?

• A)As long as the return on different investments is not perfectly positively correlated, financial intermediaries can diversify away significant amounts of portfolio risk.
• B)As long as the return on different investments is not perfectly negatively correlated, financial intermediaries can diversify away significant amounts of portfolio risk.
• C)As long as the return on different investments is perfectly positively correlated, financial intermediaries can diversify away significant amounts of portfolio risk.
• D)None of the listed options are correct.

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Definitions:

Sternberg's Triangular

A theory proposing that love can be understood in terms of three components that form a triangle: intimacy, passion, and commitment.

Commitment

A conscious decision that remains constant.

Intimacy

A feeling of closeness, mutual understanding, and mutual concern for each other’s welfare and happiness.

Sexual Acts

Physical activities involving sexual intimacy or pleasure between individuals.