A Portfolio of Stocks Can Achieve Diversification Benefits If the Stocks

question 28

Multiple Choice

A portfolio of stocks can achieve diversification benefits if the stocks that comprise the portfolio are

• A)not perfectly correlated.
• B)perfectly correlated.
• C)susceptible to common risks only.
• D)both B and C

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Definitions:

Territoriality

The behavior by which individuals or groups lay claim to and defend specific areas as their own.

Isolated Dyads

A pair of individuals who are socially isolated from others, focusing solely on each other in their interactions.

Equal Size

A description of two or more entities having the same dimensions, capacity, volume, or numerical value.

Long-Term Projects

Initiatives or endeavors that require an extended period to complete, typically involving complex tasks and significant planning.