The Creation of a Portfolio by Combining Two Assets Having

question 83

True/False

The creation of a portfolio by combining two assets having perfectly positively correlated returns cannot reduce the portfolio's overall risk below the risk of the least risky asset.

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Definitions:

Element

A pure chemical substance consisting of one type of atom, distinguished by its atomic number.

Zinc-65

A radioactive isotope of zinc with a half-life of 244 days, often used as a tracer in studies of zinc metabolism.

Protons

Positively charged subatomic particles found in the nucleus of an atom, contributing to the atom's mass and defining the element.

Zinc

A chemical element with the symbol Zn and atomic number 30; it is a slightly brittle metal at room temperature and has a variety of uses, from galvanization to dietary supplements.