Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 08, 2024

Which of the following statements is FALSE? There is some benefit to diversification when the correlation between securities is greater than 0.0 but less than

Which of the following statements is FALSE?

There is some benefit to diversification when the correlation between securities is greater than 0.0 but less than 1.0.

The maximum benefits to diversification between securities occur when they are perfectly positively correlated.

The maximum benefits to diversification between securities occur when they are perfectly negatively correlated.

There is some benefit to diversification when the correlation between securities is 0.0.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered 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

Multinational financial management

Authors: Alan c. Shapiro

10th edition

9781118801161, 1118572386, 1118801164, 978-1118572382

Students also viewed these Finance questions

Question

★★★★★

For the years 20062008, Dudley Docker Company had net income and average shares outstanding as follows: What was the percentage of change in earnings per share (EPS) in 2007? In2008? 2008 2007 2006...

Answered: 1 week ago

Question

★★★★★

20.5 Yvonne made the following acquisitions ofordinary shares in Rangle pic: Date No ofshares Cost 30 September 2005 2,000 1,200 1 December 2009 3,000 3,600 In January 2016, the company made a 1 for...

Answered: 1 week ago

Question

★★★★★

=+a) Write the null and alternative hypotheses.

Answered: 1 week ago

Question

★★★★★

Mercury Bag Company produces cases of grocery bags. The managers at Mercury are trying to develop budgets for the upcoming quarter. The following data have been gathered: Projected sales in units . ....

Answered: 1 week ago

Question

★★★★★

You have been offered a job with an unusual bonus structure. As long as you stay with the firm, you will get an extra $74,000 every seven years, starting seven years from now. What is the present...

Answered: 1 week ago

Question

★★★★★

Does variation in S&P 500 values can be explained satisfactorily using all or any combination of remaining variables - Dow jones, Nasdaq, Crude Oil, Gold, and USD/EUR? Apply appropriate Page | 3...

Answered: 1 week ago

Question

★★★★★

notes on public relations

Answered: 1 week ago

Question

★★★★★

What are the different techniques used in decision making?

Answered: 1 week ago

Question

★★★★★

Which of the following is true about an inert electrode? [A] It does not participate in the chemical reaction [B] It acts as a source or sink for electrons [C] Both a and b [D] None of the above

Answered: 1 week ago

Question

★★★★★

What do we call the ratio of a number of fission produced by a given generation of neutrons to the number of fission of the preceding generation? [A] Critical factor [B] Energy factor [C]...

Answered: 1 week ago

Question

★★★★★

Glycol is added to aviation gasoline because it: [A] reduces evaporation of petrol [B] increases efficiency of petrol [C] prevents freezing of petrol [D] reduces consumption of petrol

Answered: 1 week ago

Question

★★★★★

When ice cubes are made, the entropy of water: [A] does not change [B] decreases [C] increases [D] may either increase or decrease depending on the process used

Answered: 1 week ago

Question

★★★★★

Consider the following IS - LM model: (21 marks) C = 200 + 0.25Y D ; I = 150 + 0:25Y - 1000i G = 250; T = 200; (M/P) d = 2Y - 8000i (M/P) = 1600 Derive the equation for the IS curve (Hint: You want...

Answered: 1 week ago

Question

★★★★★

If your SWOT and competitive analyses identify no major problems, _____________ _____________ _____________.

Answered: 1 week ago

Question

★★★★★

The value of the planning process involved in writing a strategic plan is the _____________ required to write it.

Answered: 1 week ago

Question

★★★★★

An important value of internal analysis is matching _____________ with _____________.

Answered: 1 week ago

Previous Question Next Question

	There is some benefit to diversification when the correlation between securities is greater than 0.0 but less than 1.0.
	The maximum benefits to diversification between securities occur when they are perfectly positively correlated.
	The maximum benefits to diversification between securities occur when they are perfectly negatively correlated.
	There is some benefit to diversification when the correlation between securities is 0.0.