Some Diversification Benefits Can Be Achieved by Combining Securities in a Portfolio

question 72

Multiple Choice

Some diversification benefits can be achieved by combining securities in a portfolio as long as the correlation between the securities is ________.

• A) 1
• B) less than 1
• C) between 0 and 1
• D) less than or equal to 0

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Definitions:

Hemoglobin Rate

A measure of the concentration of hemoglobin in the blood, indicative of the blood's capacity to carry oxygen.

Corporate Branding

The product of the combined perception of the company, its products, its people, and its overall reputation.

Corporate Communicators

Professionals specializing in creating and managing the flow of information between an organization and its publics, including employees, media, investors, and other stakeholders.

Two-way Communication

A form of communication where information flows in both directions between the sender and the receiver, allowing for feedback and interaction.