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:

Subliminal Suggestions

Subliminal suggestions refer to messages that are presented below the threshold of conscious awareness, influencing thoughts, feelings, or behaviors without conscious processing.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Dependent Variable

In an experiment, the variable being tested and measured, expected to change due to the influence of the independent variable.

Control Group

In an experiment, this group does not receive the treatment under investigation and is used as a benchmark to measure how the other tested groups compare.