This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The portfolio expected return of two investments: a. will be higher when the covariance is zero. ... (Read 72 times)

B

  • Hero Member
  • *****
  • Posts: 570
on: Jun 24, 2018
The portfolio expected return of two investments:
 a. will be higher when the covariance is zero.
  b. will be higher when the covariance is negative.
  c. will be higher when the covariance is positive.
  d. does not depend on the covariance.

Question 2

The variance of a portfolio of two investments will be equal to the sum of the variances of the two investments when the covariance between the investments is zero.
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

aburgess

  • Sr. Member
  • ****
  • Posts: 361
Reply #1 on: Jun 24, 2018
Answer to Question 1

D

Answer to Question 2

T


B

  • Member
  • Posts: 570
Reply 2 on: Jun 24, 2018
Thanks for the timely response, appreciate it

aliotak

  • Member
  • Posts: 326
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

The human body produces and destroys 15 million blood cells every second.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

Everyone has one nostril that is larger than the other.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Lymphatic vessels (green) pick up excess tissue fluid, purify it in lymph nodes, and return it to th Lymphatic vessels (green) pick up excess tissue fluid, purify it in lymph nodes, and return it to th
New England children like David, Joanna, and Abigail Mason (painted by an unknown artist around 1670 New England children like David, Joanna, and Abigail Mason (painted by an unknown artist around 1670
Community colleges have opened higher education to millions of students who would not otherwise have ... Community colleges have opened higher education to millions of students who would not otherwise have ...
Potency and efficacy: (a) Drug A has a higher potency than drug B. (b) Drug A has a higher efficacy ... Potency and efficacy: (a) Drug A has a higher potency than drug B. (b) Drug A has a higher efficacy ...
Fuel should be heard returning to the fuel tank at the fuel return line if the fuel-pump and ... Fuel should be heard returning to the fuel tank at the fuel return line if the fuel-pump and ...
How the Return to Education Affects the Distribution of Income How the Return to Education Affects the Distribution of Income
Video: Factors that affect conduction rates (myelination, axon diameter & temperature)

For a complete list of videos, visit our video library