Increasing the Correlation Among Assets in a Portfolio Results in an Increase

question 113

True/False

Increasing the correlation among assets in a portfolio results in an increase in the standard deviation of the portfolio.

---

Definitions:

Labor

The effort by people to produce goods or services that have economic value.

Event Timing Forecast

The prediction of when certain events are likely to occur, often used in planning and strategy development.

Market

An economic system that allows buyers and sellers to exchange goods and services.

Price War

A price war is a competitive situation in which retailers or suppliers repeatedly cut prices in order to undercut competition, often to the point where the prices are unsustainable in the long term.