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7- What is a perfectly positive correlation? A. correlation coefficient = 1 B. When Stock A falls, Stock B falls with the same degree C.
7- What is a perfectly positive correlation?
- A. correlation coefficient = 1
- B. When Stock A falls, Stock B falls with the same degree
- C. A correlation in which diversification will not reduce the risk of the portfolio
- D. All of the above
An example of diversifiable risk is
- A. market risk
- B. inflation
- C. strikes
- D. all of the above
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
