Multiple Choice
Maximum diversification benefit can be achieved if one were to form a portfolio of two stocks whose returns had a correlation coefficient of:
A) -1.0
B) +1.0
C) 0.0
D) none of the above
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q136: Which one of the following is not
Q137: If stock A has a standard deviation
Q138: Variations in a firm's tax rate and
Q139: If a financial asset has a historical
Q140: A weak-form efficient market is one in
Q142: An asset's beta can be estimated by
Q143: The variance of a portfolio is a
Q144: The standard deviation is computed first and
Q145: Diversification occurs when we invest in several
Q146: If one were to rank different assets