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:

Personality

Personality encompasses the unique set of emotional, thought, and behavioral patterns that define an individual’s character and influence their interactions with the environment.

Voice Quality

Refers to the characteristics of a person's voice, including tone, pitch, and volume, which can affect communication effectiveness and listener perception.

Unique Voice

An individual's distinctive style of expression in writing or speech, which sets them apart from others.

Pitch and Resonance

Characteristics of sound or voice related to the perceived frequency (pitch) and the quality or richness (resonance) in the tone of speech.