A Portfolio of Stocks Can Achieve Diversification Benefits If the Stocks

question 72

Multiple Choice

A portfolio of stocks can achieve diversification benefits if the stocks that comprise the portfolio are ________.

• A) not perfectly positively correlated
• B) perfectly correlated
• C) susceptible to common risks only
• D) both B and C

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Definitions:

Signals Weakness

Indicates moments or actions that reveal a lack of strength, confidence, or effectiveness.

Overt Display

A conspicuous or obvious exhibition of behavior, emotions, or characteristics that is easily observable.

Ownership Of Property

The legal right or interest that an individual or entity has in an object, land, or real estate.

Class Position

An individual's or group's location within a society's stratification system, often determined by wealth, occupation, and education.