If asset returns are less than perfectly correlated, portfolio diversification
A) reduces systematic risk.
B) reduces nonsystematic risk.
C) increases systematic yields.
D) reduces systematic yields.
B
Economics
You might also like to view...
According to Figure 6.1, the period from 1974 to 1995 is particularly remarkable for the slow growth of ________
A) output per worker B) labor input C) output D) capital input
Economics
The normal level of unemployment that persists in an economy in the long run is:
A. called the natural rate of unemployment. B. also called the equilibrium rate of underemployment. C. zero when the market is equilibrium. D. always achieved in the real world.
Economics