Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 26, 2024

You are holding a portfolio with the purpose of diversifying. Below are several different companies that you have considered to invest in, along with the

You are holding a portfolio with the purpose of diversifying. Below are several different companies that you have considered to invest in, along with the correlation coefficient of each company with your current portfolio. Which of the following would achieve the MOST reduction in the risk of your portfolio?

a. Google, +1.0

b. CVS, +0.8

c. Walmart, +0.6

d. Bank of America, +0.2

e. Apple, 0.0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_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

Investment Science

Investment Science

Authors: David G. Luenberger

1st Edition

0195108094, 978-0195108095

More Books

Students also viewed these Finance questions

Question

★★★★★

Fresh Veggies, Inc. (FVI) purchases land and a warehouse for $ 490,000. In addition to the purchase price, FVI makes the following expenditures related to the acquisition: brokers commission, $...

Answered: 1 week ago

Question

★★★★★

[The following information applies to the questions displayed below.] Arboles Company manufactures pencils and has the following information available for the month of July: Required: Using the...

Answered: 1 week ago

Question

★★★★★

=+12. For which one of the following situations would Spearmans rho be appropriate?

Answered: 1 week ago

Question

★★★★★

Robben Company is considering investing in an annuity contract that will return $40,000 annually at the end of each year for 15 years. What amount should Robben Company pay for this investment if it...

Answered: 1 week ago

Question

★★★★★

Profits have been decreasing for several years at Pegasus Airlines. In an effort to improve the companys performance, the company is thinking about dropping several flights that appear to be...

Answered: 1 week ago

Question

★★★★★

Compute the discounted payback statistic for Project D if the appropriate cost of capital is 12 percent and the maximum allowable discounted payback is four years. (Do not round intermediate...

Answered: 1 week ago

Question

★★★★★

Rs. Direct materials 25,000 Indirect materials 5,000 Direct labour 30,000 Indirect labour 4,500 Factory overhead (excluding indirect materials and indirect labour) 15,000 Plant cost Required: Compute...

Answered: 1 week ago

Question

★★★★★

Yousif and his partner Hussain have decided to become a non-store retailer and would like to open a web-based retail store called Dee ReeTee which is specialized in selling unisex caps, hoodies, and...

Answered: 1 week ago

Question

★★★★★

Some health care facilities have initiated senior nurse/new graduate nurse mentoring programs in which junior staff receive informal advice and assistance from experienced staffers. Name the...

Answered: 1 week ago

Question

★★★★★

Elliott is quite the golfer and one day while playing a round of golf with some friends, he whacks his tee-shot into someone's back yard and hits the homeowner on the head with his golf ball. The...

Answered: 1 week ago

Question

★★★★★

Book: An Intro to Combustion 4th ed. by Turns and Haworth Rank these fuels in decreasing order of reactivity: H2, CH4, CO. For a given equivalence ratio, plot (qualitatively) the product gas...

Answered: 1 week ago

Question

★★★★★

3.3 Describe the impact that HRtechnology has on the role of the HR professional and the resulting three major changes to the role of HR.

Answered: 1 week ago

Question

★★★★★

3. How has the workplace failed at securing equal opportunities or wages for women?

Answered: 1 week ago

Question

★★★★★

2. Why do we need legislation to protect women in the workplace?

Answered: 1 week ago

Previous Question Next Question