Author Question: If two events are perfectly negatively correlated, then A) diversification can reduce but not ... (Read 18 times)

audragclark · **on:** Jul 1, 2018

If two events are perfectly negatively correlated, then

A) diversification can reduce but not eliminate risk.
B) diversification can eliminate risk.
C) diversification has no impact on risk.
D) diversification cuts risk in half.

Question 2

Most changes in tax laws tend to be small changes because _____.

a. the organizing costs of large coalitions are too high
b. logrolling is easier when tax laws effect only a small number of individuals
c. special interests are constantly demanding changes that will benefit them
d. of the rules of the Senate