Increasing the Correlation Among Assets in a Portfolio Results in an Increase

question 113

True/False

Increasing the correlation among assets in a portfolio results in an increase in the standard deviation of the portfolio.

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Definitions:

Algebraic Expression

A mathematical phrase that can contain ordinary numbers, variables, and operators, but does not have an equals sign.

Difference

The result of subtracting one number from another.

Algebraic Expression

An expression built up from integer constants, variables, and the algebraic operations (such as addition, subtraction, multiplication, and division).

Algebraic Expression

A mathematical phrase that can contain ordinary numbers, variables, and operation symbols but does not have an equal sign.