When Diversifying a Portfolio,you Should Select Investments with High Positive

question 87

True/False

When diversifying a portfolio,you should select investments with high positive correlation.

---

Definitions:

Emissions Tax

A tax imposed on companies based on the amount of pollution their operations emit, aimed at encouraging environmentally friendly practices.

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, meaning higher income earners pay a higher rate of tax.

Environmental Emissions

Pollutants released into the air, water, or soil as a result of industrial processes, transportation, or other activities.

Cap-And-Trade

An environmental policy tool that sets a limit on emissions and allows companies to buy and sell allowances for a certain amount of pollution, incentivizing reductions.