An investor is considering selling his Rumbidzo bank shares and acquiring NeNyasha bank shares instead. His son
Fantastic news! We've Found the answer you've been seeking!
Question:
1. Correct but only under the assumption that these shares have the same expected return.
2. Correct but only under the assumption these shares have the same standard deviation.
3. Wrong, it depends on the correlation between the portfolio and each share.
4. Wrong, in all depends on the expected performance of each share.
Related Book For
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
Posted Date: