Even if assets are not negatively correlated, the lower the positive correlation between them, the lower the resulting risk.

Name: Even if assets are not negatively correlated, the lower the positive correlation between them, the lower the resulting risk.
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Question

Quizplus · Accepted Answer

The statement is true. When assets have a lower positive correlation between them, they tend to move independently of each other. This reduces the risk of losses in the event of a market downturn.

Even If Assets Are Not Negatively Correlated, the Lower the Positive