Adding Stocks with Higher Standard Deviations to a Portfolio Will

question 45

True/False

Adding stocks with higher standard deviations to a portfolio will necessarily increase the portfolio's risk.

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market balance.

Assembly Line Technology

An efficient manufacturing process that divides work into specialized tasks sequentially arranged so that the product moves from one workstation to the next.

Aluminum

A lightweight and malleable metal used in a wide range of applications, from packaging and construction to transportation and electronics.

Number of Commercial Bakers

The number of commercial bakers refers to the total count of businesses or individuals that produce and sell baked goods on a large scale.