Indicate whether the statement is true or false 3. When adding a randomly chosen new stock to an existing portfolio, the higher or more penitive) the degree of correlation between the new stock and stocks already in the portfolio, the less the additional stock will reduce the a. True portfolio's risk b. False -34 You have funds that you want to invest in bonds, and you just noticed in the financial pages of the local newspaper that you can buy a $1.000 par value bond for $800. The coupon rate is 10% (with annual payments). and there are 10 years before the bond will mature and pay of its $1.000 par value. You should buy the bond if your required return on bonds with this risk is 12%. a. True b. False