If two events are positively correlated but NOT perfectly correlated, then

A) diversification is not necessary since there is no risk.
B) diversification eliminates all risk.
C) diversification does not reduce risk at all.
D) diversification can reduce risk.

D

Economics

You might also like to view...

In the Ricardian model, comparative advantage is likely to be due to

A) scale economies. B) home product taste bias. C) greater capital availability per worker. D) labor productivity differences. E) political pressure.

Economics

The statistical discrepancy in the balance of payments

a. is always positive b. is always negative c. is always zero d. is either positive, negative, or zero e. is indeterminate

Economics