Which of the following statements about any two stocks is correct? Group of answer choices a....
Which of the following statements about any two stocks is correct? Group of answer choices
a. Diversification benefits can be achieved as long as the two stocks have a correlation less than one. b. Diversification benefits can be achieved only when their correlation is less than zero. c. Diversification benefits can be achieved only when their correlation is negative one. d. Diversification benefits can always be achieved between two assets.
Homework Answers
Option A:
ie : if diversification=1 ; if one stock moves by 1%, the other also moves by 1% and there wont be diversification benefits. Whereas all other values of less than 1 diversification is possible
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Question 3 1 pts Which of the following statements is FALSE? O A large stock is typically more volatile than a portfolio of large stocks. O Investors would...
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