When You Compile a Portfolio of Stocks, You Should Avoid

question 30

Multiple Choice

When you compile a portfolio of stocks, you should avoid including stocks that exhibit

• A) a high negative correlation.
• B) a high positive correlation.
• C) no correlation.
• D) an inverse correlation.

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Definitions:

Market Opportunity

The degree of customer or market demand for a specific product application.

Identifying Market Opportunity

Identifying market opportunity involves analyzing market trends, needs, and gaps to find untapped areas where a new product or service could be successfully introduced.

Market Opportunity

The potential for a company to increase sales and achieve a sustainable competitive advantage by identifying and serving new markets or segments.

Customer Demand

refers to the desire and willingness of consumers to purchase goods or services at a particular price.