Diversification Is Most Effective When Security Returns Are ________

question 89

Multiple Choice

Diversification is most effective when security returns are ________.

• A) high
• B) negatively correlated
• C) positively correlated
• D) uncorrelated

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Definitions:

Military Spending

The financial allocation by a government to maintain and strengthen its armed forces, including expenditures on weaponry, infrastructure, and personnel.

Economic Growth

An increase in the production of economic goods and services, compared from one period of time to another, typically measured by GDP.

Less Developed Countries

Countries with a lower level of material wealth, economic activity, and quality of life, often characterized by low GDP per capita and human development indices.

Production Predominates

A condition where the manufacturing or creation of goods is the dominant economic activity in a particular area or sector.