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All things equal, diversification of total risk is most effective when the ROPC associated with each security...

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Finance

All things equal, diversification of totalrisk is most effective when the ROPCassociated with each security in the portfolio are __________correlated with ________.

A: Negatively correlated with the market.

B: positively correlated with the market.

C: Uncorrelated with the market.

D: negatively correlated with each other securities included inthe portfolio.

E: positively correlated with each other securities included inthe portfolio.

F: Uncorrelated with each other securities included in theportfolio.

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All things equal diversification of total risk is most effective when the ROPC associated with each security in the portfolio are negatively correlated with each other securities included in the portfolio because when there is a negative    See Answer
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Transcribed Image Text

All things equal, diversification of totalrisk is most effective when the ROPCassociated with each security in the portfolio are __________correlated with ________.A: Negatively correlated with the market.B: positively correlated with the market.C: Uncorrelated with the market.D: negatively correlated with each other securities included inthe portfolio.E: positively correlated with each other securities included inthe portfolio.F: Uncorrelated with each other securities included in theportfolio.

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