Combining Shares with Perfectly Correlated Shares Returns into a Portfolio

question 48

True/False

Combining shares with perfectly correlated shares returns into a portfolio is less risky than holding an individual share since the portfolio will benefit from diversification.

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Definitions:

Ampule

A small sealed vial which is used to contain and preserve a sample, usually a liquid, which must be opened by snapping off the neck.

Safety Engineering

The discipline of engineering focused on designing processes, equipment, and systems to minimize risk of injury, accidents, and to ensure safety in the workplace and public spaces.

Ventrogluteal Area

An anatomical site on the hip used for intramuscular injections, considered to be one of the safest locations due to its distance from major blood vessels and nerves.

Subcutaneous Injection

A method of administering medication under the skin into the fatty tissue layer, allowing for slow absorption into the bloodstream.