A Portfolio Will Always Have Less Risk Than the Riskiest

question 13

True/False

A portfolio will always have less risk than the riskiest asset in it if the correlation of assets is less than perfectly positive.

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Definitions:

Therapeutic Relationship

A bond of trust and understanding that develops between a therapist and client, allowing for effective treatment.

Content and Process

This refers to the distinction between what is being communicated (content) and how it is communicated or the dynamics of the interaction (process) in a communication or therapeutic context.

Interpersonal Therapy

A form of psychotherapy that focuses on the patient's interpersonal relationships and social functioning to help improve psychological symptoms.

Eating Disorders

Eating disorders are mental health conditions characterized by unhealthy eating habits, such as extreme overeating or undereating, often tied to psychological distress.