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Examveda

_____________is concerned with the interrelationships between security returns.

A. random diversification

B. correlating diversification

C. Friedman diversification

D. Markowitz diversification

Answer: Option D

Solution(By Examveda Team)

Markowitz diversification is concerned with the interrelationships between security returns. 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.

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