Which of the following statements is most CORRECT with respect to international diversification?
A) the gains from diversification may be diminished due to combined correlations accompanied by volatility in world markets
B) world markets always seem to be most uncorrelated when volatility is present
C) world markets have displayed relatively low and fixed correlations over the last five years
D) global diversification produces gain even when world markets have correlations value near one.
Correct Answer:
Verified
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