When a New Stock Is Introduced into a Portfolio and the Ups

question 135

True/False

When a new stock is introduced into a portfolio and the ups and downs of its return appear to coincide with those of the portfolio's return, the stock's return is said to be perfectly positively correlated with the portfolio's, and its addition will reduce portfolio risk.

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Definitions:

Indian Surrogates

Refers to women in India who carry and give birth to children for others, often as part of a commercial agreement.

Law

A system of rules created and enforced through social or governmental institutions to regulate behavior, ensuring order and justice in society.

United States

A country in North America consisting of 50 states and is a federal republic.

Internships

Work experiences offered by companies or organizations for a limited period of time, often to students or young professionals, which can be paid or unpaid.