Question
As long as the returns on different investments are perfectly positively correlated, by spreading their investments across a number of assets, financial institutions can diversify
As long as the returns on different investments are perfectly positively correlated, by spreading their investments across a number of assets, financial institutions can diversify away significant amounts of their portfolio risk.
True
False
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
4th Edition
0077262379, 978-0077262372
