Combining Uncorrelated Assets Can Reduce Risk-Not as Effectively as Combining

question 123

True/False

Combining uncorrelated assets can reduce risk-not as effectively as combining negatively correlated assets, but more effectively than combining positively correlated assets.

---

Definitions:

Eclectic

Combining ideas, styles, or techniques from a diverse range of sources.

Electroconvulsive Shock Therapy (ECT)

A medical treatment most commonly used for severe depression, involving the induction of a controlled seizure in the patient through electrical currents transmitted to the brain.

Schizophrenia

A chronic mental health disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Epilepsy

A neurological disorder characterized by recurrent, unprovoked seizures caused by abnormal brain activity.