« previous next »

Author Question: The creation of a portfolio by combining two assets having perfectly positively correlated returns ... (Read 29 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?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Tree species richness in North America is correlated with evapotranspiration rate. Tree species richness in North America is correlated with evapotranspiration rate.
Herbivore biomass is positively correlated with net aboveground primary production. Herbivore biomass is positively correlated with net aboveground primary production.
Galaxies Forming by Combining Smaller Units Galaxies Forming by Combining Smaller Units
Monopoly, patented in 1935, was an instant best-seller: Players risk all their assets in an attempt Monopoly, patented in 1935, was an instant best-seller: Players risk all their assets in an attempt
Carbohydrates: The combining of the monosaccharides glucose and fructose to form the disaccharide ... Carbohydrates: The combining of the monosaccharides glucose and fructose to form the disaccharide ...
Common Root Words and Combining Forms Cont. Common Root Words and Combining Forms Cont.
Video: Types of disease resistance: innate defenses & immunity

For a complete list of videos, visit our video library