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To effectively diversify a portfolio an investor wants stocks with _________ correlation coefficients, the effect will be to ________ the standard deviation of the portfolio.
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C. Zero; increase
Answer: B
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Diversification benefits: risk reduction through a diversification of investments. Investments that are negatively correlated or that have low positive correlation provide the best diversification benefits.
Such benefits may be particularly evident in an internationally diversified portfolio.

NEW QUESTION: 2

Response:

A. Option B
B. Option A
C. Option D
D. Option C
Answer: C

NEW QUESTION: 3
What can process standardization reduce?
A. hardware costs
B. image cloning time
C. manual Interactions
D. number of images
Answer: C
Explanation:
Reference: https://books.google.co.in/books?id=LaeXBgAAQBAJ&pg=PA283&lpg=PA283&dq=What+ can+process+standardization+reduce?+manual+Interactions&source=bl&ots=G04mqvXW _E&sig=7fm3U7BEIo7JrtcO83Xr2sMTlS0&hl=en&sa=X&ei=gQ8kVYnROsazuASky4LgBQ &ved=0CCIQ6AEwAQ#v=onepage&q=What%20can%20process%20standardization%20r educe%3F%20manual%20Interactions&f=false


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