No Benefits of Diversification with Two Stocks Occur When

question 16

Multiple Choice

No benefits of diversification with two stocks occur when is:

• A) 0
• B) 1
• C) -1
• D) 0.52

---

Definitions:

Right to Buy

An option that gives the holder the right, but not the obligation, to purchase a specific asset at a set price within a certain timeframe.

Standard Time

The amount of time that should be required to complete a task or process based on normal working conditions and average worker performance.

Average Observed Time

The mean time recorded across multiple observations or measurements of a particular variable or activity.

Performance Rating Factor

A criterion or benchmark used to evaluate the effectiveness, efficiency, or productivity of an employee, system, or process.