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Based on your correlation matrix, which risky asset has the greatest potential to reduce the risk of a portfolio comprised of the 4 assets we
Based on your correlation matrix, which risky asset has the greatest potential to reduce the risk of a portfolio comprised of the 4 assets we are considering?
Covariance Matrix Market Small Cap Gold 2.44 5.12 1.47 0.00 T-Note Market Small Cap Gold T-Note 1.49 2.44 0.63) 0.00 (0.63) 1.47 3.46 0.00 0.00 0.00 0.00 0.00 Correlation Matrix Market Small Cap Gold T-Note Market Small Cap Gold T-Note 1.00 0.88 (0.28) 0.19 1.00 0.35) 0.05 1.00 0.03 1.00
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