CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

Paired correlations of assets should be relatively ______ within an asset class and relatively ______ versus assets in other asset classes.

A. low, low
B. low, high
C. high, low
Correct Answer: C

An asset class should contain relatively homogeneous assets (high correlation) while providing diversification relative to other asset classes.

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