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Why Does Total Portfolio Management Include Correlations Among Assets and Liabilities

Question 15

Multiple Choice

Why does Total Portfolio management include correlations among assets and liabilities?


A) Because the household is the sum of its separate assets less its liabilities
B) Because the household is an operating enterprise in which the individual activities influence each other
C) Because correlations measure the riskiness of individual assets and liabilities
D) Both a and b
E) Both b and c

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