Investing in Two Assets with a Correlation Coefficient of 1

question 14

Multiple Choice

Investing in two assets with a correlation coefficient of 1.0 will reduce which kind of risk?

• A) Market risk
• B) Unique risk
• C) Unsystematic risk
• D) With a correlation of 1.0, no risk will be reduced

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May

The fifth month of the Julian and Gregorian calendars, often used in financial and operational planning calendars.

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The total amount of cash collected by a business during a specific period.

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The twelfth and final month of the year in the Gregorian calendar.

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