Multiple Choice
Which of the following statements is correct?
A) Uncorrelated assets have a correlation of −1.0.
B) Most common stocks are positively correlated with each other because they are impacted by the economic factors.
C) We can typically add many stocks together to fully eliminate the market risk in a portfolio.
D) None of the statements are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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