Which of the following securities could NOT have any benefits for dive
Which of the following securities could NOT have any benefits for diversification with your investment portfolio?
A) Treasury bills with a correlation coefficient of 0.0 with your portfolio
B) Alpha Company stock that has a correlation coefficient of -0.25 with your portfolio
C) Beta Company stock that has a correlation coefficient of 0.50 with your portfolio
D) All of these choices would reduce risk for your portfolio and therefore show at least some benefit to diversification.
ANSWER
Answer: D
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