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inysia [295]
3 years ago
6

Some diversification benefits can be achieved by combining securities in a portfolio as long as the correlation between the secu

rities is _____________.
Social Studies
1 answer:
dlinn [17]3 years ago
7 0

Answer:

Less than 1

Explanation:

Diversification is the term used for the process aimed at reducing total risk in a portfolio by combining a variety of assets. It is a strategic management process aimed at reducing losses associated to any single asset or risk.

Diversifying also reduce the volatility by spreading investments around, Preserves capital, and generate returns

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