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Which of the Following Portfolios Has the Least Reduction of Risk

Question 7

Multiple Choice

Which of the following portfolios has the least reduction of risk?


A) A portfolio with securities all having positive correlation with each other.
B) A portfolio with securities all having zero correlation with each other.
C) A portfolio with securities all having negative correlation with each other.
D) A portfolio with securities all having skewed correlation with each other.

Correct Answer:

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