portfolio management questions:

Q4. If you own a foreign security, are you more concerned with micro or macro political risk?

answer for all the questions

Q1. If the correlation between two series of returns is negative, their covariance is also negative. True or false, and why? Q2. If most people are rational, why do you think they fail to diversify properly? In particular, why do they fail to include foreign securities in their portfolios? Q3. To a portfolio manager, why is economic exposure more important than either type of accounting exposure? Q4. If you own a foreign security, are you more concerned with micro or macro political risk