Question
A portfolio is being formed that includes 2 assets with the goal of reducing as much risk as possible through diversification. Which of the following
A portfolio is being formed that includes 2 assets with the goal of reducing as much risk as possible through diversification. Which of the following statistics will indicate that the maximum reduction of risk through diversification can be obtained?
| Correlation coefficient = 0 | ||
| Covariance = 1 | ||
| Correlation coefficient = -1 | ||
| Variance = 1 | ||
| Covariance = 0 | ||
| Variance = 0 |
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Managerial Accounting For Decision Making
Authors: Seohee Park
1st Edition
B08HCQCN2G
