A Portfolio Combining Two Assets with Less Than Perfectly Positive

question 1

True/False

A portfolio combining two assets with less than perfectly positive correlation can reduce total risk to a level below that of either of the components.

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Definitions:

Northern States

Geographical regions located in the northern part of a country, often characterized by specific climatic, cultural, or socio-economic traits.

Socioeconomic Status

An individual or group's economic and social position based on income, education, and occupation, influencing their access to resources.

Murder Rate

The number of murders per unit of population within a specified time frame, often used as an indicator of societal violence levels.

Subculture Of Violence

A segment within society that holds values and norms that accept, justify, or glorify violence, distinguishing it from the broader cultural norms.