The More Volatile the Returns of Individual Investments in a Portfolio

question 103

True/False

The more volatile the returns of individual investments in a portfolio, the more volatile the portfolio's returns are over time.

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Definitions:

Evolutionary Arms Race

A cycle of adaptations and counter-adaptations occurring between competing species or between predators and their prey.

Natural Selection

The process by which heritable traits that confer a survival and reproductive advantage increase in frequency in a population, leading to evolutionary change.

Gene Expression

Gene expression is the process by which information from a gene is used in the synthesis of a functional gene product, often a protein.

Genetic Variation

Differences in DNA among individuals or populations, enabling diversity within species.