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:

Petty Cash

A small amount of cash kept on hand for making immediate payments for miscellaneous small expenses in an office or business.

Purchase Requisition

A document used in the procurement process to request authorization for a purchase order.

Department Manager

An individual responsible for overseeing the operations, personnel, and budget of a specific department within a company.

Petty Cash Account

A small amount of cash kept on hand for making immediate payments for miscellaneous small expenses.