The Creation of a Portfolio by Combining Two Assets Having

question 148

True/False

The creation of a portfolio by combining two assets having perfectly positively correlated returns cannot reduce the portfolio's overall risk below the risk of the least risky asset, whereas a portfolio combining two assets with less than perfectly positive correlation can reduce total risk to a level below that of either of the components.

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Definitions:

Euphemism

The use of mild or indirect words or expressions to replace ones considered harsh, blunt, or offensive.

Motivate Audience

The act of inspiring or energizing viewers or listeners to engage, respond, or take action.

Euphemisms

Mild or indirect words or expressions substituted for ones considered harsh or blunt when referring to something unpleasant or embarrassing.

Obscured Truth

Information or facts that are made difficult to understand or perceive clearly, often intentionally.