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Who concern with relations between security returns

A. Markowitz diversification

B. random diversification

C. Friedman diversification

D. correlating diversification

Answer: Option A

Solution (By Examveda Team)

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.

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