Busıness Fınance I Deneme Sınavı Sorusu #1138840

Which of the following is the value for correlation of two securities that creates the maximum diversification? 


-100

-1

0

1

100


Yanıt Açıklaması:

Remembering that the correlation lies between -1 and +1, the benefit would be eliminated at +1, whereas the maximum diversification benefit would be reached at -1. Therefore, the correct answer is B. 

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