Question
Consider the following correlations between three stocks: IBM Apple Disney IBM 1.0 0.6 0.8 Apple 1.0 0.4 Disney 1.0 Given the information in this table,
Consider the following correlations between three stocks:
|
| IBM | Apple | Disney |
| IBM | 1.0 | 0.6 | 0.8 |
| Apple |
| 1.0 | 0.4 |
| Disney |
|
| 1.0 |
Given the information in this table, which pair of stocks would eliminate the most risk in a two stock portfolio?
Group of answer choices
IBM & Apple
IBM & Disney
Apple with itself
Disney & Apple
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
Finance And Financial Markets
Authors: Keith Pilbeam
2nd Edition
1403948356, 978-1403948359
