Question: TRUE / FALSE . Write ' T ' if the statement is true and ' F ' if the statement is false. Combining negatively correlated
TRUEFALSE Write if the statement is true and if the statement is false.
Combining negatively correlated assets can reduce the overall variability of returns.
In general, the lower the correlation between asset returns, the greater the potential
diversification of risk.
Because any investor can create a portfolio of assets that will eliminate all, or virtually all,
nondiversifiable risk, the only relevant risk is diversifiable risk.
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