The benefits of portfolio diversification are highest when the individual securities within the portfolio have returns that: vary directly with the rest of the portfolio. vary proportionally with the rest of the portfolio. are largely uncorrelated with the rest of the portfolio. are perfectly correlated with the market portfolio.
The benefits of portfolio diversification are highest when the individual securities within the portfolio have returns that: vary directly with the rest of the portfolio. vary proportionally with the rest of the portfolio. are largely uncorrelated with the rest of the portfolio. are perfectly correlated with the market 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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Transcribed Image Text:The benefits of portfolio diversification are highest when the individual securities within the portfolio have returns that:
vary directly with the rest of the portfolio.
vary proportionally with the rest of the portfolio.
are largely uncorrelated with the rest of the portfolio.
are perfectly correlated with the market portfolio.
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