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:

Business Messages

Any form of communication used in a professional setting to convey information, decisions, or updates.

Persuasive Tactics

Strategies or methods employed to convince others to agree with one's views, accept a proposal, or take action.

Emotional Appeals

A persuasive technique that targets the emotions of the audience to elicit a response or convince them of an argument.

Discernible Rational Function

A mathematical function characterized by a quotient of polynomials that is identifiable and can be explicitly defined.