Use the following three statements to answer this question: I. There will be benefits from diversification as
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Question:
Use the following three statements to answer this question:
I. There will be benefits from diversification as long as pAB < +1.
II. As long as pAB = -1, an equally weighted portfolio would be risk-free.
III. Diversification can never eliminate the total risk of the portfolio.
I is correct, II is incorrect, III is correct.
I and II are correct, III is incorrect.
I, II and II are incorrect.
I is incorrect, II is correct, III is correct.
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