If your portfolio consisted of two stocks, which of the following correlations would be the most desirable?
a. 0, the lowest possible correlation
b. 1, the highest possible correlation
c. -1, the lowest possible correlation
d. any value other than 0
d. any value other than-1

Respuesta :

Answer:

Check the following explanation

Explanation:

-1, the lowest possible correlation .

The correlation between the activity of two stocks, or between a stock and the performance of a given index, sector or industry, can be a very important factor in developing a prudent investing strategy.