In General, the Lower (Less Positive and More Negative) the Correlation

question 46

Multiple Choice

In general, the lower (less positive and more negative) the correlation between asset returns,

• A) the less the potential diversification of risk.
• B) the greater the potential diversification of risk.
• C) the lower the potential profit.
• D) the less the assets have to be monitored.

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Definitions:

B2C Products

Goods and services offered by businesses directly to the end consumer for personal use.

B4B Products

Products or services that are specifically designed and sold by businesses to other businesses rather than individual consumers, focusing on meeting the specialized needs of organizations.

BOB Products

Black on Black products, emphasizing goods designed and marketed specifically to appeal to a Black audience.

Industrial Products

Goods and services sold to other industries or businesses for the production of goods, maintenance of operations, or resale.