Multiple Choice
Lower (less positive and more negative) the correlation between asset returns, ________.
A) lesser the potential diversification of risk
B) greater the potential diversification of risk
C) lower the potential profit
D) lesser the assets have to be monitored
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q122: Tim purchased a bounce house one year
Q123: Combining uncorrelated assets can reduce risk-not as
Q124: An investment banker has recommended a $100,000
Q125: Total security risk is the sum of
Q126: The value of zero for beta coefficient
Q128: A firm produces goods which has high
Q129: The real utility of the coefficient of
Q130: As risk aversion increases _.<br>A) a firm's
Q131: A _ is a measure of relative
Q132: Nondiversifiable risk reflects the contribution of an