If You Are Trying to Adequately Diversify Your Portfolio, You

question 87

Multiple Choice

If you are trying to adequately diversify your portfolio, you would want to avoid investing in stocks that were

• A) highly negatively correlated.
• B) not at all correlated.
• C) highly positively correlated.
• D) in different regions of the world.

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Definitions:

Sternum

A long, flat bone located in the center of the chest, connecting to the ribs via cartilage, forming the front part of the rib cage.

Basal Cell

A type of cell found in the lowest layer of the epidermis, involved in the production of new skin cells.

Squamous Cell

A flat, scale-like epithelial cell found in the tissue that forms the surface of the skin, lining of the hollow organs of the body, and passages of the respiratory and digestive tracts.