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If General Auto and Crystal Auto Have Returns That Are

question 23

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If General Auto and Crystal Auto have returns that are perfectly positively correlated, then adding Crystal Auto to a portfolio that already contains General Auto will


Definitions:

Centralization

The concentration of control or decision-making authority in a centralized body or location, away from local or individual entities.

Decentralization

The process of distributing or dispersing functions, powers, people or things away from a central location or authority.

Trade Barriers

Government-imposed restrictions on international trade, such as tariffs and quotas, that affect the free flow of goods between countries.

Inefficient Industry

A sector of the economy where resources are not optimally used, often leading to wasted efforts, higher production costs, and reduced competitiveness.

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