Which of the Following Statements Is Correct

question 81

Multiple Choice

Which of the following statements is correct?

• A)Uncorrelated assets have a correlation of -1.0.
• B)Most common stocks are positively correlated with each other because they are impacted by the economic factors.
• C)We can typically add many stocks together to fully eliminate the market risk in a portfolio.
• D)None of these statements is correct.

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Definitions:

Labor

The effort by humans to produce goods or services in the economy.

Marginal Product

The extra output produced from using an additional unit of a specific input while keeping all other inputs unchanged.

Average Product

The output per unit of input, for example, the quantity of goods produced per labor hour, indicating overall productivity.

Workers

Individuals engaged in any form of economic activity or employment, contributing labor for the production of goods and services.