Question: Other things equal, diversification is most effective when: a) Securities returns are uncorrelated. b) Securities' returns are positively correlated. c) Securities' returns are high. d)

Other things equal, diversification is most effective when:

a) Securities returns are uncorrelated.

b) Securities' returns are positively correlated.

c) Securities' returns are high.

d) Securities' returns are negatively correlated.

e) Both securities' returns are positively correlated and securities' returns are high.

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