A Portfolio Combining Two Assets Whose Returns Are Less Than

question 136

True/False

A portfolio combining two assets whose returns are less than perfectly positive correlated can increase total risk to a level above that of either of the components.

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Definitions:

Therapeutic Touch

A healing method involving the hands of a healer to detect and manipulate the energy field of the patient.

Cognitive Skill

The mental abilities that involve the processing of information, such as thinking, learning, remembering, problem-solving, and paying attention.

Mindfulness

A moment-to-moment present awareness with an attitude on non-judgment, acceptance, and openness. Mindfulness meditative practices are effective in reducing psychological and physical symptoms or perceptions of stress.

Tolerate Uncertain

The ability to remain calm and functional despite not knowing outcomes or having incomplete information.