Which of the following is NOT one of Greer's asset class characteristics?

The characteristic of being "highly correlated" is not typically associated with Greer's asset class characteristics. In fact, one of the primary benefits of including various asset classes in a portfolio is to achieve diversification. Asset classes that exhibit low or negative correlation with one another help investors reduce risk and enhance potential returns, as the performance of one asset class could offset the performance of another.

In contrast, the other characteristics outlined reflect key attributes of asset classes. Prevalence in the market signifies that the asset class is commonly recognized and widely traded, which tends to lead to greater liquidity and price discovery. Homogeneity means that the assets within the class are relatively similar or comparable, making it easier to categorize and assess their behaviors and risks. Finally, diversifying indicates that the asset class can contribute to a reduction in overall portfolio risk when combined with other asset classes that behave differently under varying market conditions.

These characteristics illustrate the fundamental principles of asset allocation and portfolio management, which are essential concepts for achieving optimal investment outcomes.