Even If Assets Are Not Negatively Correlated,the Lower the Correlation

question 169

True/False

Even if assets are not negatively correlated,the lower the correlation between them,the lower the resulting risk of the portfolio.

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Definitions:

Aristotle

An ancient Greek philosopher and polymath, whose extensive writings cover diverse subjects including physics, biology, metaphysics, logic, ethics, and politics, significantly influencing Western intellectual history.

Organisms Changed

Refers to alterations in the genetic, physical, or behavioral traits of living organisms due to evolutionary processes, environmental pressures, or genetic modifications.

Population Growth

The increase in the number of individuals in a population, determined by factors like birth rates, death rates, immigration, and emigration.

Predation

An ecological interaction where one organism, the predator, kills and eats another organism, its prey.