If the Correlation Between the Returns on Two Securities Is

question 116

True/False

if the correlation between the returns on two securities is +1.0, if the securities are combined in the correct proportions, the resulting 2-asset portfolio will have less risk than either security held alone.

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Definitions:

Basal Ganglia

A group of structures in the brain involved in processing information on movement and coordination.

Amygdala

A part of the brain's limbic system involved in emotion, survival instincts, and memory.

Caudate Nucleus

A part of the brain within the basal ganglia involved in various functions including motor control and learning processes.

Globus Pallidus Internal

A sub-component of the basal ganglia, involved in regulating voluntary movement.