In compiling a portfolio,which of the following should you not consider?
A) Investments that exhibit a high positive correlation
B) Investments whose values are not influenced by similar conditions
C) Negatively correlated investments
D) Investments whose reaction to economic conditions will not be similar

Question

Quizplus · Accepted Answer

When compiling a portfolio, it is important to consider investments that exhibit low or negative correlations in order to diversify and reduce overall risk. Therefore, option A should not be considered. Options B, C, and D all offer benefits to a portfolio and should be considered.

In Compiling a Portfolio,which of the Following Should You Not