If two investments are perfectly negatively correlated: Select one: O a. diversification reduces both risk and...
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If two investments are perfectly negatively correlated: Select one: O a. diversification reduces both risk and the expected payoff. b. bets are perfectly hedged and risks are canceled out. O c. diversification is not effective at reducing risk. O d. diversification reduces risk without changing the expected payoff. If two investments are perfectly negatively correlated: Select one: O a. diversification reduces both risk and the expected payoff. b. bets are perfectly hedged and risks are canceled out. O c. diversification is not effective at reducing risk. O d. diversification reduces risk without changing the expected payoff.
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The Option A is true Explanation Explanation Portfolio diversification P... View the full answer
Related Book For
Money Banking and Financial Markets
ISBN: 978-0078021749
4th edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
Posted Date:
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