A Portfolio Manager Is Considering Adding Another Security to His

question 106

Multiple Choice

A portfolio manager is considering adding another security to his portfolio. The correlations of the five alternatives available are listed below. Which security would enable the highest level of risk diversification?

• A) 0.0
• B) 0.25
• C) - 0.25
• D) - 0.75
• E) 1.0

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Definitions:

Skin Integrity

The state of the skin being whole, undamaged, and intact, with an adequate barrier function and absence of wounds or lesions.

Pressure Points

Specific areas on the body considered sensitive and can be used to alleviate pain or apply therapeutic pressure.

Assessment Priority

The determination of the most important aspects to evaluate in a given situation, particularly in healthcare settings.

Non-Blanchable Reddened Area

A skin condition observed in the early stages of pressure ulcer formation, where redness does not turn white (blanch) when pressed.