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 = 0 | ||
| Variance = 0 | ||
| Correlation coefficient = -1 | ||
| Variance = 1 | ||
| Covariance = 1 |
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Practical Finance For Property Investment
Authors: Craig Furfine
1st Edition
036733304X, 978-0367333041
