For purposes of diversification what type of correlation


1. What is the possible range for a correlation coefficient?

2. For purposes of diversification, what type of correlation coefficient among assets returns is preferred by investors? Provide a brief explanation.

3. Explain the validity of the following statements and provide one (1) supporting fact to justify your reasoning. "Investors do not like risk and will always choose the investment with the least risk."

 

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Finance Basics: For purposes of diversification what type of correlation
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