Even If the Correlation Between the Returns on Two Securities

question 108

True/False

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

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Definitions:

Neurocognitive Disorders

A category of conditions that affect cognitive function, including memory, problem-solving, attention, and perception, due to brain damage or disease.

Alzheimer Disease

A progressive neurological disorder that results in the degeneration and death of brain cells, leading to memory loss, cognitive decline, and personality changes.

Neurocognitive Disorders

Disorders that affect cognitive functions such as memory, problem-solving, and attention due to alterations in the brain.

50%

A percentage representing half of a whole or a quantity, used in various contexts to indicate a half portion.