If Two Assets with Correlation Coefficients of Less Than One

question 13

True/False

If two assets with correlation coefficients of less than one make up a portfolio, then the portfolio does not take advantage of any diversification benefits.

---

Definitions:

Socialization

The process through which an organization communicates its values to new employees.

Organization

A group of people who work together in an organized way for a shared purpose.

Values

Core beliefs or principles that guide and motivate attitudes and actions, reflecting what is important to an individual or organization.

Networked Cultures

Social and organizational cultures that are formed and operate through digital networks and communication technologies, facilitating global connections.