risk can be reduced by: a. diversifying a portfolio b. selling lower-priced stocks and buying higher...
risk can be reduced by:
a. diversifying a portfolio
b. selling lower-priced stocks and buying higher priced ones
c. holding stocks that are less than perfectly correlated with each other in protfolio
d. a and b
e. a and c
Homework Answers
The answer is is
E. A and C
Risk can be reduced by diversifying the portfolio
Holding stocks which are not perfectly correlated with each other diversified risk as their returns do not move perfectly in the same direction
Hence both a and c are correct
B is not related to reducing risk
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risk can be reduced by:
a. diversifying a portfolio
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