Even If the Correlation Between the Returns on Two Securities

question 108

True/False

Even if the correlation between the returns on two securities is +1.0,if the securities are combined in the correct proportions,the resulting two-asset portfolio will have less risk than either security held alone.

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Definitions:

Finger foods

Foods designed to be eaten with the hands, typically small, easily manageable pieces suitable for infants starting to eat solid foods.

Solid foods

Nutrient-rich foods introduced to an infant's diet in addition to breastmilk or formula, typically starting around 6 months of age to support growth and development.

Dendrites

Root-like parts of neurons that receive impulses from other neurons.

Neurons

The basic working units of the brain, specialized cells that transmit information through electrical and chemical signals.