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The Easiest Risks to Reduce by Diversification Are Those Associated

question 31

True/False

The easiest risks to reduce by diversification are those associated with positively correlated events.


Definitions:

Black

A color which is the result of the absence or complete absorption of visible light.

Probability

The numerical rating, from 0 to 1, indicating the chance an event will happen.

Fair Die

A die that is perfectly balanced, ensuring that each of its faces has an equal likelihood of landing up when thrown.

Probability

A rephrased definition: A statistical metric that quantifies the chance that a specific event or outcome will happen.

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