If the Correlation Between the Returns on Two Securities Is

question 116

True/False

if the correlation between the returns on two securities is +1.0, if the securities are combined in the correct proportions, the resulting 2-asset portfolio will have less risk than either security held alone.

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Definitions:

Pteridophyta

Pteridophyta is a division of non-flowering plants also known as ferns and their allies, characterized by having vascular tissues and reproducing through spores.

Bryophyta

A division of non-vascular plants that includes mosses, characterized by a life cycle dominated by the gametophyte stage.

Hepaticophyta

A division of non-vascular plants known as liverworts, which are small, herbaceous plants found worldwide, playing a key role in the ecology of moist habitats.

Anthocerophyta

A phylum of non-vascular plants known as hornworts, characterized by a sporophyte that resembles a horn.