If Two Stocks Are Perfectly Negatively Correlated, a Portfolio with Equal

question 62

True/False

If two stocks are perfectly negatively correlated, a portfolio with equal weighting in each stock will always have a volatility (standard deviation) of 0.

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Definitions:

Brown Bears

Large omnivorous mammals found in various regions across the globe, characterized by their brown fur and significant size.

Overlap

The extent to which two or more entities share common areas, features, or functions.

Hybrid Sterility

A postzygotic reproductive isolating mechanism in which an interspecific hybrid cannot reproduce successfully.

Hybrid Breakdown

A postzygotic reproductive isolating mechanism in which, although an interspecific hybrid is fertile and produces a second (F2) generation, the F2 has defects that prevent it from successfully reproducing.