Multiple Choice
If two events are perfectly positively correlated,then
A) diversification is not necessary since there is no risk.
B) diversification eliminates all risk.
C) diversification does not reduce risk at all.
D) diversification only cuts the risk in half.
Correct Answer:

Verified
Correct Answer:
Verified
Q4: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6808/.jpg" alt=" -The above figure
Q5: A rational person maximizes<br>A) risk.<br>B) return.<br>C) expected
Q6: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6808/.jpg" alt=" -The above figure
Q7: If an individual makes her investment decisions
Q8: For a risk-neutral person,the expected utility associated
Q10: The expected utility theory<br>A) predicts all actions
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Q12: If fair insurance is offered to a
Q13: A risk-neutral individual will make investment decisions
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