FIN-350 Module 7 DQ 1

FIN-350 Module 7 DQ 1

Fundamentals of Business Finance – Short-Term Financial Decision Making

Grand Canyon University

Diversification occurs when stocks with low correlations of returns are placed together in a portfolio. Identify at least one type of firm that might exhibit low correlations of returns with the overall stock market? Explain why the correlations of these firms are expected to be low.

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