Adding a Randomly Chosen New Stock to an Existing Portfolio

question 61

True/False

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.

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Definitions:

Late Adulthood Transition

Late adulthood transition refers to the stage in human development characterized by changes and adjustments in lifestyle, roles, and health that occur in older age, typically considered to begin around the age of 65.

New Career Paradigm

Emerging trends and concepts in career development that emphasize flexibility, self-directed learning, and a focus on skills and projects over job titles.

Team-oriented Individuals

Refers to people who naturally work well within groups, prioritizing team goals over individual achievements.

Flexible

Capable of adapting to new, different, or changing requirements without significant difficulty.