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1 June, 00:18

If your portfolio consisted of two stocks, which of the following correlations would be the most desirable?

a. 0, the lowest possible correlation

b. 1, the highest possible correlation

c. - 1, the lowest possible correlation

d. any value other than 0

d. any value other than-1

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Answers (1)
  1. 1 June, 03:57
    0
    Check the following explanation

    Explanation:

    -1, the lowest possible correlation.

    The correlation between the activity of two stocks, or between a stock and the performance of a given index, sector or industry, can be a very important factor in developing a prudent investing strategy.
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Home » Business » If your portfolio consisted of two stocks, which of the following correlations would be the most desirable? a. 0, the lowest possible correlation b. 1, the highest possible correlation c. - 1, the lowest possible correlation d.
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