If the Returns on Two Assets Are Negatively Correlated, Then

question 6

True/False

If the returns on two assets are negatively correlated, then a portfolio that contains some of each will have less variance in its return per dollar invested than either asset has by itself.

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Definitions:

Actin

Actin is a globular protein that forms filaments, playing a vital role in muscle contraction, cell movement, and the maintenance of cell shape in all eukaryotic cells.

Myosin

A type of motor protein found in muscle tissue that is involved in muscle contraction and movement by interacting with actin.

Synapses

The junctions between neurons through which electrical or chemical signals are transmitted.

Basement Membrane

A thin, dense layer of extracellular matrix that separates epithelial and endothelial cells from the underlying connective tissue.