Which of the Following Statements Is Correct

question 89

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 the statements are correct.

---

Definitions:

Constitution

The supreme law of a country, outlining the framework for its governance and the fundamental principles and rights that protect its citizens.

Liberties

The state of being free within society from oppressive restrictions imposed by authority on one's way of life, behavior, or political views.

Government Structure

The organized framework through which a government operates, including its branches, departments, and agencies.

Plaintiff

The party who initiates a lawsuit in civil court, claiming to have incurred loss or damages due to the defendant's actions.