A Portfolio That Combines Two Assets Having Perfectly Positive Correlation

question 18

True/False

A portfolio that combines two assets having perfectly positive correlation returns cannot reduce the portfolio's overall risk below the risk of the least risky asset.

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Definitions:

Contractile Ring

A structure made of actin filaments that constricts the cytoplasm during cell division, leading to cytokinesis.

Cell Plate

Of plants, disk-shaped structure that forms and partitions descendant cells during cytokinesis.

Cytokinesis

The process during cell division in which the cytoplasm divides, resulting in two daughter cells.

Telophase

Stage of mitosis during which chromosomes arrive at opposite spindle poles, decondense, and become enclosed by a new nuclear envelope.