Select all that are true with respect to diversification and the risk-return trade-off. Group of answer choices If two assets are perfectly positively correlated, then one gets diversification benefits by combining these assets into a portfolio If two assets are less than perfectly correlated, then one gets diversification benefits by combining these assets into a portfolio If two assets are perfectly negatively correlated, then one can eliminate risk by properly combining these two assets in a portfolio If two assets are uncorrelated, then one gets diversification benefits by combining these assets into a portfolio If two assets are uncorrelated, then one cannot get diversification benefits by combining these assets into a portfolio
Select all that are true with respect to diversification and the risk-return trade-off. Group of answer choices If two assets are perfectly positively correlated, then one gets diversification benefits by combining these assets into a portfolio If two assets are less than perfectly correlated, then one gets diversification benefits by combining these assets into a portfolio If two assets are perfectly negatively correlated, then one can eliminate risk by properly combining these two assets in a portfolio If two assets are uncorrelated, then one gets diversification benefits by combining these assets into a portfolio If two assets are uncorrelated, then one cannot get diversification benefits by combining these assets into a portfolio
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Select all that are true with respect to diversification and the risk-return trade-off.
Group of answer choices
If two assets are perfectly positively correlated, then one gets diversification benefits by combining these assets into a portfolio
If two assets are less than perfectly correlated, then one gets diversification benefits by combining these assets into a portfolio
If two assets are perfectly negatively correlated, then one can eliminate risk by properly combining these two assets in a portfolio
If two assets are uncorrelated, then one gets diversification benefits by combining these assets into a portfolio
If two assets are uncorrelated, then one cannot get diversification benefits by combining these assets into a portfolio
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