Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 24, 2024

Question 3 To reduce risk, combine assets in portfolio With no correlation, correlation of zero is the best choice With minimal correlation, negative correlation would

Question

3

To reduce risk, combine assets in portfolio

With no correlation, correlation of zero is the best choice

With minimal correlation, negative correlation would be the best

With maximum correlation, correlation of positive one is desirable

With maximum or minimum correlation, depending on specific situation

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

Recommended Textbook for

Technical Analysis Of Stock Trends

Authors: Robert D. Edwards, John Magee

5th Edition

0910944008, 978-0910944007

More Books

Students also viewed these Finance questions

Question

★★★★★

Describe the mechanism that leads from a change in fiscal policy to changes in interest rates, exchange rates, and the current account balance. Do the same for monetary policy.

Answered: 1 week ago

Question

★★★★★

Entries to write off accounts receivable OBJ. 3, 4 Creative Solutions Company, a computer consulting firm, has decided to write off the $11,750 balance of an account owed by a customer, Wil...

Answered: 1 week ago

Question

★★★★★

In what sense can Thorndike be considered a functionalist and in what sense can he be considered a behaviorist?

Answered: 1 week ago

Question

★★★★★

1. Given the risk, what would motivate an investor to purchase stock in Gogo? 2. Why would Gogo sell stock rather than taking on additional debt financing? Do you think that this was a good decision?...

Answered: 1 week ago

Question

★★★★★

Crane Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Crane showed Cash of $5,000 and Owner's Capital of $5,000. May 1...

Answered: 1 week ago

Question

★★★★★

Franklin's investment fund had a balance of $280,000 on January 1, 1995 and a balance of $447,000 two years later. The amount of interest earned during the two years was $33,000, and the annual yield...

Answered: 1 week ago

Question

★★★★★

Discuss the contributions of Emile Durkheim to sociology, particularly his concepts of social facts and collective conscience.

Answered: 1 week ago

Question

★★★★★

What is the effect of word war second?

Answered: 1 week ago

Question

★★★★★

Required information P2-5 (Algo) Recording Transactions, Preparing Journal Entries, Posting to T-Accounts, Preparing the Balance Sheet, and Evaluating the Current Ratio LO2-2, 2-4, 2-5 [The following...

Answered: 1 week ago

Question

★★★★★

Find the accumulation function F. Then evaluate F at each value of the independent variable and graphically show the area given by each value of the independent variable. (If needed use solid lines...

Answered: 1 week ago

Question

★★★★★

To influence the way in which managers make decisions within organisations, which of the following approaches should be adopted?" Performance measurement system. Reward structure. Performance...

Answered: 1 week ago

Question

★★★★★

Explain how MNCs address the tension between the dual imperatives of global integration and local responsiveness.

Answered: 1 week ago

Question

★★★★★

Comment on whether globalization is driving processes of convergence or divergence in HRM policies and practices

Answered: 1 week ago

Question

★★★★★

What role can the HSE, the trade unions and the environmental movement play in the development of a sustainable and healthy workplace and community?

Answered: 1 week ago

Previous Question Next Question