The Only Condition Under Which Risk Can Be Reduced to Zero

question 89

True/False

The only condition under which risk can be reduced to zero is to find securities that are perfectly negatively correlated (ρ = −1.0)with each other.

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Definitions:

Transverse Diameter

The measurement across the widest part of a structure or organ, perpendicular to its longitudinal axis.

Pigeon Chest

A condition characterized by a protrusion of the sternum and ribs, giving the chest a bird-like appearance, formally known as pectus carinatum.

Lung Assessment

The evaluation of lung sounds, function, and overall respiratory health.

Pneumonia

An inflammatory condition of the lung primarily affecting the small air sacs known as alveoli, usually caused by infection.