Combining Assets with Highly Correlated Returns Will Greatly Reduce Portfolio

question 41

True/False

Combining assets with highly correlated returns will greatly reduce portfolio risk.
Just the opposite: Negative correlation spreads risk more effectively.

---

Definitions:

Carbon Fixation

The conversion process of inorganic carbon (carbon dioxide) into organic compounds by living organisms, mainly by photosynthesis in plants.

Chloroplast

Organelles found in plant and algae cells that conduct photosynthesis, converting light energy, water, and carbon dioxide into sugars and oxygen.

Chemiosmosis

The movement of ions across a semipermeable barrier, generating ATP in the process of cellular respiration or photosynthesis.

ATP Synthesis

ATP Synthesis is the biochemical process by which cells produce ATP (Adenosine Triphosphate), utilizing energy from food molecules or sunlight in photosynthetic organisms to power cellular functions.