Combining Assets with Highly Correlated Returns Will Reduce Portfolio Risk

question 80

True/False

Combining assets with highly correlated returns will reduce portfolio risk.

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Definitions:

Economists

Experts who study the production, distribution, and consumption of goods and services.

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal.

Interest Rates

The cost of borrowing money or the return on invested capital, expressed as a percentage of the principal amount.

Investment

The procedure or operation of assigning financial assets with the intention of achieving a revenue or profit.