Question
The investor is the owner of the following assets: shares of insurance company and owner of the construction company and also the owner of shares
The investor is the owner of the following assets: shares of insurance company and owner of the construction company and also the owner of shares of airline company and shares of petroleum producer. We can state that:
(2 Points)
The investor has mitigated specific risk and additionally his investments are among other being positively correlated between each other making the investment hedged against such situations like earthquake or changes in oil prices on the market.
The investor has mitigated his market risk and additionally his investments are among other being negatively correlated between each other making the investment hedged against such situations like earthquake or changes in oil prices on the market.
The investor has mitigated his market risk and additionally his investments are among other being positively correlated between each other making the investment hedged against such situations like earthquake or changes in oil prices on the market.
The investor has mitigated his market risk and additionally his investments are among other being negatively correlated between each other making the investment hedged against such situations like earthquake or changes in oil prices on the market.
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. Mcguigan, William J. Kretlow
9th Edition
032416470X, 9780324164701
