What Diversification, If Any, Is Achieved If Two Shares in a Portfolio

question 55

Essay

What diversification, if any, is achieved if two shares in a portfolio are perfectly positively correlated?

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Definitions:

Alzheimer's Disease

A progressive neurodegenerative disorder characterized by cognitive decline, memory loss, and changes in behavior.

Brain Cells

Cells located in the brain, including neurons and glial cells, responsible for processing and transmitting information.

Vitamin B-1

Also known as Thiamine, it is an essential nutrient that helps the body convert carbohydrates into energy and supports nerve function.

Prefrontal Cortex

The front part of the frontal lobes of the brain, involved in decision making, problem-solving, control of purposeful behaviors, consciousness, and emotions.