When Combining Many Assets into a Portfolio the Correlation Between

question 68

Multiple Choice

When combining many assets into a portfolio the correlation between the variables has a(n) ____ impact on the overall risk of the portfolio than the overall risk of each asset.

• A) larger
• B) equal
• C) smaller
• D) none of the above

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Definitions:

Freud

Sigmund Freud, an Austrian neurologist, established psychoanalysis as a method of treating mental disorders through conversations between a patient and a psychoanalyst.

Manifest Content

In psychoanalytic theory, the apparent, literal content of a dream, as distinguished from its latent content, which is hidden.

Latent Content

In dream analysis, the hidden psychological meaning of a dream, as opposed to the literal storyline (manifest content).

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, known for his theories about the unconscious mind and psychosexual development.