Which of the following securities could NOT have any benefits for diversification with your investment...
70.2K
Verified Solution
Question
Finance
Which of the following securities could NOT have any benefits for diversification with your investment portfolio?
A. Alpha Company stock that has a correlation coefficient of 0.25 with your portfolio
B. Beta Company stock that has a correlation coefficient of 0.50 with your portfolio
C. Treasury bills with a correlation coefficient of 0.0 with your portfolio
D. All of these choices would reduce risk for your portfolio and therefore show at least some benefit to diversification.
Please explain WHY
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.