An Investor Will Get Maximum Risk Reduction by Combining Assets

question 86

Multiple Choice

An investor will get maximum risk reduction by combining assets that are

• A) negatively correlated.
• B) positively correlated.
• C) uncorrelated.
• D) perfectly, positively correlated.

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Definitions:

Behavior Problems

Behavior problems refer to actions or patterns of conduct that are socially unacceptable, disruptive, or harmful, often observed in children and adolescents but can occur at any age.

Eighth Grade

A term used in the United States to refer to the eighth year of formal education, typically for students aged 13-14.

Orderly Environment

A state of methodical arrangement or organization, typically referring to physical spaces or social structures that are managed to promote efficiency and calm.

Educational Attainment

The highest level of education an individual has completed, often used as an indicator of skill level, social status, and economic potential.