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Using this data: Answer the following questions: Date KO SP 3 1 / 0 1 / 2 0 2 0 0 , 0 5 3
Using this data: Answer the following questions: Date KO SP
Cov
Var SP
Var KO
beta
correl
Average KO
Average SP
Which of the following statements are true?
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Question Select one or more:
The longterm returns of both strategies are practically zero.
The longterm return of the momentum strategy is clearly positive, but the longterm return of the value strategy is practically zero.
The longterm return of the value strategy is clearly positive, but the longterm return of the momentum strategy is practically zero.
The longterm returns of both strategies are clearly positive.
The correlation between the returns of the two strategies is high resulting in little diversification benefits for an investor who invests in both strategies.
The correlation between the returns of the two strategies is low resulting in large diversification benefits for an investor who invests in both strategies.
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