If you are building a portfolio, then you desire assets that have a correlation coefficient of one.

Name: If you are building a portfolio, then you desire assets that have a correlation coefficient of one.
Brand: Quizplus
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Quizplus · Accepted Answer

If all assets in a portfolio have a correlation coefficient of one, it means they move in perfect sync with each other, which increases the risk of the portfolio as a whole. It is recommended to have a mix of assets with different correlation coefficients to diversify the risk.

If You Are Building a Portfolio, Then You Desire Assets