Question
1, If investors want portfolios with small risk (variance), should they look for investments that have positive covariance, have negative covariance, or are uncorrelated? 2,
1, If investors want portfolios with small risk (variance), should they look for investments that have positive covariance, have negative covariance, or are uncorrelated?
2, Does a portfolio formed from the mix of three investments have more risk (variance) than a portfolio formed from two?
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Economics of Money, Banking and Financial Markets
Authors: Frederic S. Mishkin
9th Edition
978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905
