Q783
Who concern with relations between security returns
A.
Markowitz diversification
AnswerB.
random diversification
C.
Friedman diversification
D.
correlating diversification
Answer: Option A
Solution
Answer: Option A
Solution:
Markowitz diversification concern with relations between security returns. Markowitz diversification is a strategy that seeks to combine in a portfolio assets with returns that are less than perfectly positively correlated, in an effort to lower portfolio risk (variance) without sacrificing return. Related: Naive diversification.