Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 06, 2024

10) A portfolio consisting of two securities with perfect negative correlation in the proper proportions can be shown to have a standard deviation of zero.

image text in transcribed

10) A portfolio consisting of two securities with perfect negative correlation in the proper proportions can be shown to have a standard deviation of zero. What makes this riskless portfolio impossible to achieve in the real world

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

FINA 6201 Financial Theory And Policy Emery Trahan

Authors: Emery Trahan

1st Edition

1609270754

More Books

Students also viewed these Finance questions

Question

★★★★★

Use the 2011 Form 10-K (year ended on January 1, 2012) for Coca-Cola Bottling Co. Consolidated to complete the requirements below. Be aware that Coca-Cola Bottling Co. Consolidated (COKE) is a...

Answered: 1 week ago

Question

★★★★★

2. Mrs. Simpson buys loaves of bread and quarts of milk each week at prices of $1 and 80 cents, respectively. At present she is buying these products in amounts such that the marginal utilities from...

Answered: 1 week ago

Question

★★★★★

Determine whether the following production functions show constant, increasing or decreasing returns to scale: ( a) Q = L 0.60 K 0.40 ( b) Q = 5 K 0.5 L 0.3 ( c) Q = 4 L + 2 K

Answered: 1 week ago

Question

★★★★★

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The companys balance sheet as of June 30th is shown below: Beechs managers...

Answered: 1 week ago

Question

★★★★★

While making purchase decisions, individuals within an organization who realize that the acquisition of a product might solve an organizational need or problem are referred to as _____. a....

Answered: 1 week ago

Question

★★★★★

As the supply of funds in the banking system the federal funds rate . a . increases; increases b . declines; declines c . increases; declines d . None of these choices are correct.

Answered: 1 week ago

Question

★★★★★

On January 1, 2020, Surigao Company issued bonds with face amount of P4,000,000 and stated interest rate of 12%. The interest is payable semiannually on June 30 and December 31. The bonds mature on...

Answered: 1 week ago

Question

★★★★★

Let U = {A E M22 det(A) = 0} where M22 is the vector space of two by two matrices. Find an example that shows U is NOT a subspace of M22. In cryptography we often use matrix operations but modulo...

Answered: 1 week ago

Question

★★★★★

Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior payment and that all invoices...

Answered: 1 week ago

Question

★★★★★

Blue Skies Equipment Company uses the aging approach to estimate bad debt expense at the end of each accounting year. Credit sales occur frequently on terms n/60. The balance of each account...

Answered: 1 week ago

Question

★★★★★

The price of Bluetooth headphones is falling. In a free-market economic system where everything else is equal, the most likely explanation is Multiple Choice there is a shortage of Bluetooth...

Answered: 1 week ago

Previous Question Next Question