Unless Assets Are Negatively Correlated, Combining Assets into a Portfolio

question 79

True/False

Unless assets are negatively correlated, combining assets into a portfolio will not reduce portfolio risk.

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Definitions:

Ischial Tuberosities

Bony protrusions located at the lower and back part of the pelvis, which bear the body's weight when sitting.

Iliac Fossae

The large, concave areas on the inner surface of the iliac bones, part of the pelvis.

Olecranon Process

A prominent projection on the upper end of the ulna that forms the tip of the elbow.

Distal End

The farthest point from the center of the body, or the point farthest from the point of attachment of a limb or structure.