Diversification is the concept of lowered risk when securities are held in a portfolio. Securities with low correlation, or co-movements, offer greater diversification benefits. The quantification of this lowered risk can be forecast by using portfolio weights and the risk measures found in a covariance matrix.
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False. The first part is true, the second is false
Guy: How do you measure
when executing your daily trade lists?
Rex: By instinct. How much did you spend at lunch today Guy? $6.73 or $6.74?
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