Question
You currently hold U.S. stocks through an Exchange-Traded Fund, A.In order to better diversify your portfolio, you are planning on investing in one additional ETF,
You currently hold U.S. stocks through an Exchange-Traded Fund, A.In order to better diversify your portfolio, you are planning on investing in one additional ETF, B. Ideally, what should the correlation be between the returns on A and B if your goal is to maximize diversification?
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Modern Portfolio Theory and Investment Analysis
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
9th edition
9781118805800, 1118469941, 1118805801, 978-1118469941
