The benefit of diversification is minimized when assets are perfectly positively correlated (correlation of +1), as the portfolio returns move in tandem and mirror the risk of the individual assets without reduction.

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