Question: 4 points Which statement is FALSE? Correlation coefficient of rero provides the greatest diversification benefit. If two assets have a zero correlation, their returns will
4 points Which statement is FALSE? Correlation coefficient of rero provides the greatest diversification benefit. If two assets have a zero correlation, their returns will move randomly and independently of each other Arisk premium is the extra compensation paid to an investor who invests in a risky asset rather than in ariak tree asset Correlation is the extent to which the returns on two assets move together Systematic risk remains constant regardless of the number of securities held in a portfolio
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