When Adding a Randomly Chosen New Stock to an Existing

question 61

True/False

When adding a randomly chosen new stock to an existing portfolio, the higher (or more positive) the degree of correlation between the new stock and stocks already in the portfolio, the less the additional stock will reduce the portfolio's risk.

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Definitions:

Peristalsis

A series of wave-like muscle contractions that moves food through the digestive tract.

Neurotransmitters

Chemical agents that facilitate communication from one neuron to another across a synaptic gap in the nervous system.

Fibrous Connective Tissue

A type of connective tissue rich in collagen fibers, providing support and strength to various body structures.

Cord-Like Structures

Anatomical features that resemble cords, such as tendons or ligaments, providing support or connecting different parts of the body.