If the Returns on Different Assets Are Uncorrelated

question 23

Multiple Choice

If the returns on different assets are uncorrelated:

• A) an increase in the number of assets in a portfolio may bring the standard deviation of the portfolio close to zero.
• B) there will be little gain from diversification.
• C) diversification will result in risk averaging but not in risk reduction.
• D) the expected return on a portfolio of such assets should be zero.

Understand the mechanisms of occupational and intergenerational mobility.

Evaluate the effectiveness of social policies in addressing poverty.

Assess how poverty affects various demographic groups differently.

Understand the relationship between personality traits and susceptibility to mental health issues.

---

Definitions:

Urinary Retention

The inability to completely or partially empty the bladder, which can lead to discomfort or complications.

Hazardous Side Effects

Unintended and potentially dangerous reactions caused by medication or treatments that can pose significant health risks to the patient.

Tyramine-Restricted Diet

A diet that limits the intake of tyramine, a substance found in certain foods, to prevent adverse reactions, particularly in individuals taking certain medications like monoamine oxidase inhibitors (MAOIs).

Macaroni and Cheese

A popular dish made from cooked macaroni pasta and a cheese sauce, often baked or served as a comfort food.