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:

Postclassic Groups

Refers to civilizations in the Mesoamerican region after the collapse of Classic period powers (around 900 CE) up to the Spanish conquest, characterized by changes in political structure, warfare, and culture.

Olmec

An early Mesoamerican civilization known for its monumental sculpture, particularly colossal heads, and for its contributions to later Mesoamerican cultures.

Coyolxauhqui

An Aztec goddess symbolizing the moon, depicted in myths as dismembered by her brother, the sun god Huitzilopochtli, reflecting the theme of celestial battles.

Huitzilopochtli

The Aztec god of the sun and war, central to Aztec religion and mythology, often depicted as a fierce warrior.