Question
Which of the following correlations would provide the MOST DIVERSIFICATION (i.e, it would decrease our standard deviation the most) if added to our current 1
Which of the following correlations would provide the MOST DIVERSIFICATION (i.e, it would decrease our standard deviation the most) if added to our current 1 asset portfolio? Thus giving us a 2 asset portfolio.
Group of answer choices
r = 1
r = -1
r = .2
r = .6
None of the above
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Investments An Introduction
Authors: Herbert B Mayo
10th Edition
0538452099, 9780538452090
