Correlation. What is correlation? How can you use this concept to reduce risk? (Select the best answer below) O A Correlation coeficients measure the degree to which two assets move together. For example, it wasses were perfectly positively correlated they would both only move up and by the same amount of the same time OB . Correlation coefficients measure the degree to which two assets move together. For example, w e were perfectly positively correlated they would both only move down and by the same amount at the same time O Correlation coefficients measure the degree to which two assets move together For example, two sets were perfectly positively corried they would both move up or down by the same the same D. Correlation coeficients measure the degree to which we assets move apart For example, we assets were perfectly positively colated they would move in opposite direction by the am ount at the same time How can you use this concept to reduce risk? (Select the best answer below) sets are perfect y D A Effectively portfolio diversification that increases is requires that you invest in assets that are not perfectly positively corred. The lowest degree of risk reduction occurs when two correlated O B . Effectively portfolo diversification that reduces is requires that you have in ass that are not perfectly postovely col d haigest egree of risk reduction occurs when OC . Effectively portfolio diversification that increases is requires that you investisses that not perfectly posve correlated the highest sincrease occurs when t perfec e perfect ively correlated ively h reduction occurs when w e are perfect .com O D . Effectively portfolio diversification that reduces requires that you invest in assets that are perfectly positively comted The lowest degree of