Combining Uncorrelated Assets Can Reduce Risk-Not as Effectively as Combining

question 123

True/False

Combining uncorrelated assets can reduce risk-not as effectively as combining negatively correlated assets, but more effectively than combining positively correlated assets.

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Definitions:

Semi-permanent

Referring to something not designed to last indefinitely but also not intended for quick disposal or replacement; having a medium-term duration.

Work

The exertion of effort towards achieving a goal, often associated with professional or employment activities but also applicable to tasks and responsibilities.

Problem-solving

The process of identifying a problem, developing possible solutions, and choosing and implementing the most effective solution.

Cyber-attack

A malicious attempt to damage, disrupt, or gain unauthorized access to a computer system, network, or digital information.