When Adding a Randomly Chosen New Stock to an Existing

question 61

True/False

When adding a randomly chosen new stock to an existing portfolio, the higher (or more positive) the degree of correlation between the new stock and stocks already in the portfolio, the less the additional stock will reduce the portfolio's risk.

---

Definitions:

Mature Trees

Fully grown trees that have reached their full size and reproductive potential, playing a crucial role in ecosystems by providing habitat and maintaining biodiversity.

Seedlings

are young plants, especially trees, that have germinated from seeds and are in the early stages of growth.

Crown Fire

A wildfire that spreads from treetop to treetop, often out of control, and is more intense than a surface fire.