QUESTION 7 In what of the following situations, diversification will be least effective OA. when security returns are all negative OB, when security returns are negatively correlated OC. when security returns are positively correlated OD.when security returns are uncorrelated QUESTION 8 Suppose there is a positive correlation between portfolio A and portfolio B. What of the following descriptions is correct? A the returns of A and B tend to move inversely OB. the returns of A and B tend to vary independently of each other the returns of A and B tend to move together . OD. none of the above