Adding Shares with Higher Standard Deviations to a Portfolio Will

question 71

True/False

Adding shares with higher standard deviations to a portfolio will necessarily increase the portfolio's risk.

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Definitions:

Covalent Bonds

A type of chemical bond involving the sharing of electron pairs between atoms, which results in a stable balance of attractive and repulsive forces between atoms.

Atom

The basic unit of a chemical element, consisting of a nucleus of protons and neutrons, with electrons orbiting around it.

Substance

A form of matter with a specific chemical composition and set of properties that distinguish it from other forms of matter.

Common Isotope

A variant of a chemical element that has the same number of protons but a different number of neutrons in its nucleus, and is normally more abundant than other isotopes.