Combining Assets with Highly Correlated Returns Will Greatly Reduce Portfolio

question 76

True/False

Combining assets with highly correlated returns will greatly reduce portfolio risk.

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Definitions:

Dominant Alleles

Alleles that mask the effect of other alleles at the same gene locus when they are present.

Population Genetics

The study of the distributions and changes of allele frequency in a population, as influenced by evolutionary processes such as natural selection, gene flow, mutation, and genetic drift.

Community Dynamics

The variations, changes, and interactions between species within a community over time.

Biogeography

The study of the distribution of species across space (geography) and time.