Question: For a security to help diversify a portfolio, the asset a. should have a return that is negatively correlated with the return on other securities
For a security to help diversify a portfolio, the asset
a. should have a return that is negatively correlated with the return on other securities in the portfolio.
b. must be a debt instrument if the portfolio consists primarily of stocks.
c. must generate a greater return than the average return on the portfolio.
d. should not be sensitive to changes in security prices.
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