A Portfolio of Two Negatively Correlated Assets Has Less Risk

question 92

True/False

A portfolio of two negatively correlated assets has less risk than either of the individual assets.

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Definitions:

Effect Sizes

Statistical measures that quantify the difference between two groups, indicating the magnitude of a treatment or intervention's effectiveness.

Eastern Countries

Geographic regions located in the eastern part of the world, often including nations in Asia, characterized by diverse cultures, traditions, and histories.

MBSR

Mindfulness-Based Stress Reduction, a program that uses mindfulness meditation to help people manage stress, anxiety, depression, and pain.

MBCT

Mindfulness-Based Cognitive Therapy, a psychological therapy designed to aid in preventing the relapse of depression.