You wish to diversify your single-security portfolio in a way that will maximize your reduction in risk. Which of the following securities should you add to your? portfolio?
A. Treasury bills that have a correlation coefficient of 0.0 with your current security
B. Alpha Company stock that has a correlation coefficient of -0.25 with your current security
C. Delta Company bonds that have a correlation coefficient of 0.36 with your current security
D. Beta Company stock that has a correlation coefficient of 0.50 with your current security
Ans: B. Alpha Company stock that has a correlation coefficient of -0.25 with your current security
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The bond market has occasionally outperformed the stock market for several years at a time
Indicate whether the statement is true or false.
The user, the programmer, and another member of the programming team do a(n) ______________________________ of the module specifications and the test plan to determine that the test plan is adequate; then the programmer codes the program.
Fill in the blank(s) with the appropriate word(s).
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Answer the following statement true (T) or false (F)