« previous next »

Author Question: The creation of a portfolio by combining two assets having perfectly positively correlated returns ... (Read 63 times)

ENagel

  • Hero Member
  • *****
  • Posts: 540
on: Jul 10, 2018
The creation of a portfolio by combining two assets having perfectly positively correlated returns cannot reduce the portfolio's overall risk below the risk of the least risky asset.
 
  Indicate whether the statement is true or false

Question 2

The risk of a portfolio containing international stocks generally contains less nondiversifiable risk than one that contains only domestic stocks.
 
  Indicate whether the statement is true or false


LVPMS

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jul 10, 2018
Answer to Question 1

TRUE

Answer to Question 2

TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Creation of Spiral and Elliptical Galaxies Creation of Spiral and Elliptical Galaxies
The strange situation. The Strange Situation features a series of episodes in which (a) the mother l The strange situation. The Strange Situation features a series of episodes in which (a) the mother l
Walter Thompson saw his assets evaporate during the stock market collapse in 1929. Desperate for ... Walter Thompson saw his assets evaporate during the stock market collapse in 1929. Desperate for ...
Conscientiousness is negatively correlated with a number of health-related behaviors. The higher the ... Conscientiousness is negatively correlated with a number of health-related behaviors. The higher the ...
Common Root Words and Combining Forms Cont. Common Root Words and Combining Forms Cont.
A portfolio earned -13%, 18%, 5%, 24%, and -5% in five successive years. What was the ... A portfolio earned -13%, 18%, 5%, 24%, and -5% in five successive years. What was the ...
Video: Structures that affect circulation - venous return

For a complete list of videos, visit our video library