For purposes of maximum portfolio diversification, which of the following would provide the greatest diversification?
A) Security A with a correlation coefficient of -0.0
B) Security B with a correlation coefficient of 0.0
C) Security C with a correlation coefficient of -0.50
D) Security D with a correlation coefficient of 0.50
ANSWER
Answer: C
Place an order in 3 easy steps. Takes less than 5 mins.