An Asset with a Large Standard Deviation of Returns Can

question 69

True/False

An asset with a large standard deviation of returns can lower portfolio risk if its returns are uncorrelated with the returns on the other assets in the portfolio.

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Definitions:

Secondary Structure

The specific folding and patterns (such as alpha-helices and beta-sheets) within a protein or nucleic acid resulting from hydrogen bonding.

Nucleic Acid

Macromolecules, including DNA and RNA, that store and transmit genetic information.

Pentose Sugars

A class of simple sugars that contain five carbon atoms, important in biological molecules like DNA and RNA.

Nitrogenous Bases

Organic molecules that make up the building blocks of nucleic acids, DNA and RNA, including adenine, guanine, cytosine, thymine (in DNA), and uracil (in RNA).