The Greater the Negative Correlation Between Two (Or More) Securities

question 56

True/False

The greater the negative correlation between two (or more) securities, the lower the portfolio standard deviation (all else being equal).

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Definitions:

Hardiness

A personality trait characterized by resilience and the ability to endure stressful situations.

Continuity

The state or quality of being continuous, consistent, and without interruption in processes, existence, or operations.

Social Support

The perceived comfort, care, esteem, or help one receives from others, which plays a crucial role in psychological well-being and stress management.

Stress-Related Illnesses

Health problems that are directly or indirectly caused by stress, including psychological and physical conditions.