Portfolio Diversification Is Most Effective When the Correlation Coefficient Is

question 27

Multiple Choice

Portfolio diversification is most effective when the correlation coefficient is

• A) greater than zero
• B) positive
• C) less than one
• D) less than zero

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Definitions:

Classification

The process of organizing or categorizing objects or information based on shared qualities or characteristics.

Dependent Clause

A group of words that contains a subject and a verb but does not express a complete thought, making it unable to stand alone as a sentence.

Summary Transition

A phrase or sentence that signals the conclusion of one section or topic and the move to a different or overarching summary within a piece of writing.

RankBrain

A component of Google's core algorithm that uses machine learning to determine the most relevant search results for queries.