To reduce your risk,you should select stocks whose returns exhibit a ________ positive correlation rather than a ________ positive correlation.
A) high; high
B) low; high
C) high; low
D) low; low

Question

Quizplus · Accepted Answer

Selecting stocks with a low positive correlation reduces risk because their returns are less likely to move in the same direction, providing diversification benefits.

To Reduce Your Risk,you Should Select Stocks Whose Returns Exhibit