A portfolio with securities all having positive correlation with each other
A portfolio with securities all has zero correlation with each other
A portfolio with securities all having negative correlation with each other
A portfolio with securities all has skewed correlation with each other
✅ The correct answer is A.
A portfolio with securities all having positive correlation with each other has the least reduction of risk. A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds.
A portfolio with securities all having positive correlation with each other has the least reduction of risk. A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds.