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

Question

inysia [295]

2 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] · Answer 1 · 2022-05-15T21:40:49+03:00

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