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.

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Definitions:

Strategic Global Partnerships

Collaborations between companies across different countries aimed at leveraging resources, knowledge, and markets to achieve mutual business goals.

North American Free Trade Agreement

A trilateral trade bloc agreement between Canada, Mexico, and the United States to reduce trading costs, increase business investment, and help North America be more competitive in the global marketplace.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariffs, quotas, or prohibitions.

United States

A country located in North America, bordered by Canada to the north, Mexico to the south, the Atlantic Ocean to the east, and the Pacific Ocean to the west.