To reduce risk,you should look for assets with highly positively correlated related returns.

Question

Quizplus · Accepted Answer

To reduce risk, you should look for assets with low or negatively correlated returns, as this diversifies your portfolio and reduces the impact of any single asset's poor performance. Assets with highly positively correlated returns may actually increase your risk, as all the assets may perform well or poorly together.

To Reduce Risk,you Should Look for Assets with Highly Positively