Multiple Choice
Walter has his entire portfolio invested in the stock of the company where he works. He is considering purchasing one of four ETFs, each of which has the same expected return, but has a different correlation with his portfolio. Walter should choose the ETF that has a correlation of:
A) -0.3.
B) 0.0.
C) 0.5.
D) 1.0.
Correct Answer:
Verified
Correct Answer:
Verified
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