If the Return on Two Stocks Is Highly and Positivelycorrelated

question 2

True/False

If the return on two stocks is highly and positivelycorrelated , combining these stocks will reduce the risk associated with the portfolio.

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Definitions:

Epinephrine

A hormone and medication that increases heart rate, tightens blood vessels, and opens airways in the lungs, commonly used to treat severe allergic reactions.

Blood Product

Any therapeutic substance prepared from human blood, including whole blood, plasma, and cellular components.

Vital Signs

Key measurements of the body's basic functioning, including temperature, heart rate, respiration rate, and blood pressure.

Pulse Oximetry

A non-invasive method to measure the oxygen saturation level of the blood, providing insights into a person's respiratory efficiency.