Which One of the Following Statements Is NOT Correct About

question 1

Multiple Choice

Which one of the following statements is NOT correct about globally diversifying a portfolio?

• A) Diversification may lower the standard deviation of portfolio returns.
• B) Diversification is effective even if correlation coefficients are above .9
• C) The standard deviation of portfolio returns can be reduced if correlation coefficients do not equal 1.
• D) Diversification using securities from segmented and rather price inefficient markets can reduce overall portfolio risk.

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Definitions:

Certification Elections

Elections conducted to determine the labor union that will represent a group of employees in bargaining with their employer.

Certified

Having official recognition or guaranteed conformance to specified standards, often through the completion of a testing or evaluation process.

Authorization Cards

Documents signed by employees to indicate their wish to be represented by a union in dealings with their employer.

Card-Check

A method used in labor relations where employees can form a union by signing cards stating they wish to be represented, bypassing a secret ballot election.