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:

Home Countries

The countries where multinational companies are headquartered or originate from.

Immigration

The process of individuals moving into a new country with the intention of permanent residence.

Total Output

The total amount of goods and services produced by an economy or a firm within a specific period.

Productive Capacity

The maximum output a company, sector, or economy can produce using its current resources efficiently.