Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 04, 2024

You own TSLA stock however you are concerned about volatility. So you decide to add another stock that has a correlation coefficient of 1 with

You own TSLA stock however you are concerned about volatility. So you decide to add another stock that has a correlation coefficient of 1 with TESLA. By doing so what kind of risk did you reduce?

A. Market risk

B. Company specific risk

C. Unsystematic risk

D. Inflation risk

E. None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored 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

Essentials Of Health Care Finance

Authors: William O. Cleverley

3rd Edition

0834203413, 978-0834203419

More Books

Students also viewed these Finance questions

Question

★★★★★

You have been given a file that contains fields relating to CD information. Using the steps of normalization, create a logical data model that represents this file in third normal form. The fields...

Answered: 1 week ago

Question

★★★★★

a . What is the purpose of the employees earnings record? b . What information does the Accumulated Earnings column on the employees earnings record contain?

Answered: 1 week ago

Question

★★★★★

2. Think of a recent purchase you made in your everyday life. Explain how this purchasing process would be different if you were buying the same product for a firm on a regular basis versus...

Answered: 1 week ago

Question

★★★★★

Jimmy's Delicatessen sells large tins of Tom Tucker's Toffee. The deli uses a periodic review system, checking inventory levels every 10 days, at which time an order is placed for more tins. Order...

Answered: 1 week ago

Question

★★★★★

You own TSLA stock however you are concerned about volatility. So you decide to add another stock that has a correlation coefficient of 1 with TESLA. By doing so what kind of risk did you reduce? A....

Answered: 1 week ago

Question

★★★★★

Alphabet Incorporated is the parent company for a collection of businessesthe largest of which is Google. The following activities were adapted from a recent annual report of Alphabet Incorporated...

Answered: 1 week ago

Question

★★★★★

Please elaborate to the following questions as it deals with revenue management in the hospitality industry. 1. Should revenue management efforts be locally managed or centralized to a regional...

Answered: 1 week ago

Question

★★★★★

5. a) Distinguish between a reactive and a proactive risk strategy. (7 marks) b) Define the term risk retention and distinguish between active and passive risk retention. (8 marks)

Answered: 1 week ago

Question

★★★★★

The GLOBE project extended the studies of Hofstede and Trompenaars and factored all the dimensions based upon manager\'s input located in over 60 countries. There were some new dimensions added as a...

Answered: 1 week ago

Question

★★★★★

Where; Throughput time (TH) = Work in progress (WIP) x Cycle Time (CT) Throughput time (TH) = time taken for inputs (WIP) to move through the system Work in progress (WIP) = Items in the process at...

Answered: 1 week ago

Question

★★★★★

The Bis Corporations is a company that produces and distributes paints. Currently, eight manufacturing plants located in cities such as Atlanta and Denver serve about 2,000 retail stores including...

Answered: 1 week ago

Previous Question Next Question