Diversification can eliminate risk, if the securities of a portfolio are:

CS Executive · Financial and Strategic Management · PYQS · December 2019
Diversification can eliminate risk, if the securities of a portfolio are:
(A) perfectly positively correlated
(B) perfectly negatively correlated
(C) weakly positively correlated
(D) weakly negatively correlated

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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