In order to diversify risk, investors are often encouraged to invest in assets whose returns have either
Question:
In order to diversify risk, investors are often encouraged to invest in assets whose returns have either a negative relationship or no relationship. The annual return data on two assets is shown below.
Construct a scatterplot. For diversity purposes, would the investor be wise to include these assets in her portfolio? Explain. R-69
Transcribed Image Text:
Return A Return B -20% -5 8% 5 18 -1 15 -2 -12 2
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Business Statistics Communicating With Numbers
ISBN: 9780071317610
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