The Risk of the Portfolio Depends Not Only on the Individual

question 116

Short Answer

The risk of the portfolio depends not only on the individual risks of the assets but also on the ________ between the asset returns.

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Definitions:

Sense of Industry

A concept from Erik Erikson's theory of psychosocial development referring to the stage where children develop a sense of pride and competence in their skills and abilities through societal and familial encouragement.

Sense of Self

The perception or awareness one has of oneself, including one’s traits, beliefs, and personality.

Protective Factors

Conditions or attributes in individuals, families, communities, or the larger society that, when present, mitigate or eliminate risk in families and communities that increase the likelihood of positive outcomes.

Adverse Conditions

Unfavorable or harmful environments or situations that can negatively impact health, well-being, or performance.