Correlation Has ________ Effect on the Expected Return of a Portfolio

question 9

Multiple Choice

Correlation has ________ effect on the expected return of a portfolio.

• A) a positive
• B) zero
• C) a negative
• D) none of the above

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Definitions:

Human Factors Psychologists

Professionals who study how people interact with machines and environments to improve safety, efficiency, and product design.

Self-Driving Vehicles

Automated cars equipped with sensors and software to navigate and drive without human intervention.

Gestalt Psychology

A psychological approach that emphasizes understanding the whole experience rather than breaking it down into parts.

Insight

The sudden realization or understanding of the solution to a problem, often perceived as an "aha" moment.