A Portfolio of Two Negatively Correlated Assets May Have Less

question 48

True/False

A portfolio of two negatively correlated assets may have less risk than either of the individual assets.

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Definitions:

Heterothallic

Pertaining to certain algae and fungi that have two mating types; only by combining a plus strain and a minus strain can sexual reproduction occur. Compare with homothallic.

Heterozygous

Having two different alleles of a particular gene, one inherited from each parent, resulting in variation of a specific genetic trait.

Nutrient Absorption

The process by which substances such as vitamins, minerals, and other food components are taken up and assimilated into the body, typically occurring in the intestines.

Hypha

One of the threadlike filaments composing the mycelium of a water mold or fungus.