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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:

Olfaction

Our sense of smell.

Childhood Memories

Recollections of events, experiences, or emotions from one's early years, which can significantly impact one's personality and behaviors.

Celebrating Christmas

An annual holiday commemorating the birth of Jesus Christ, observed by exchanging gifts, decorating, and partaking in various cultural traditions.

Olfactory Receptors

Specialized nerve cells in the nose responsible for detecting and processing smells.

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