The benefit of diversification is maximized when assets are perfectly negatively correlated (correlation of -1), which theoretically allows for the elimination of all portfolio risk.

Authors

• Person: Not available Organization: CAUL
  Topic 2: The Risk and Return Trade Off in Financial Decision Making

Sources

• Topic 2: The Risk and Return Trade Off in Financial Decision Making oercollective.caul.edu.au CAUL via serper

Referenced by nodes (1)

• diversification concept