Question: For a security to help diversify a portfolio, the asset a. must generate a greater return than the average return on the portfolio. b. should

For a security to help diversify a portfolio, the asset

a.

must generate a greater return than the average return on the portfolio.

b.

should not be sensitive to changes in security prices.

c.

should have a return that is negatively correlated with the return on other securities in the portfolio.

d.

must be a debt instrument if the portfolio consists primarily of stocks.

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