If the Returns on Two Assets Have a Correlation Coefficient

question 34

True/False

If the returns on two assets have a correlation coefficient of one, then there are no benefits of diversification by combining these assets in a two-asset portfolio.

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Definitions:

Self-Compassion

Refers to the practice of being kind and understanding to oneself in instances of pain or failure, rather than being harshly self-critical.

Clothing

Items worn on the body, typically made from fabrics or textiles, but can also include items made from animal skin or other thin sheets of materials put together, serving purposes from protection to cultural expression.

Ourselves

Refers to one's own person or identity, typically used for emphasis or self-reference.

Narcissists

Individuals who exhibit a pervasive pattern of grandiosity, a need for admiration, and a lack of empathy for others.