Question: A correlation coefficient of 0.8 will produce _____ diversification, while a correlation coefficient of 0 will produce ______ diversification and a correlation coefficient of -0.5

A correlation coefficient of 0.8 will produce _____ diversification, while a correlation coefficient of 0 will produce ______ diversification and a correlation coefficient of -0.5 will produce ______ diversification.

a) low;some;lots of

b) low;none;lots of

c) lots of;some;low

d) lots of;none;low

e) impossible to determine without having the volatility

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