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

Author Question: By incrementally adding securities to a portfolio (Read 47 times)

mwit1967

  • Hero Member
  • *****
  • Posts: 501
on: Apr 25, 2021

Question 1

Bond prices rise when interest rates fall. These two variables (bond prices and interest rates) are
◦ not correlated.
◦ positively correlated.
◦ negatively correlated.
◦ positively skewed.

Question 2

By incrementally adding securities to a portfolio
◦ you can reduce portfolio risk only if the new security is uncorrelated with the others in the portfolio.
◦ you raise portfolio risk since having more securities in a portfolio increases the likelihood that one of them will become worthless.
◦ you may reduce portfolio risk, even if new securities are not negatively correlated with others in the portfolio.
◦ you may eliminate all risk with about 15 different stocks in a portfolio.
◦ you reduce risk at an increasing rate.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by mwit1967 on Apr 25, 2021

olivia_paige29

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 32% of students answer this correctly


mwit1967

  • Member
  • Posts: 501
Reply 2 on: Apr 25, 2021
:D TYSM

ASDFGJLO

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Norimaki Zushi: Adding garnishes Norimaki Zushi: Adding garnishes
Adding a Poll on Biology Forums Adding a Poll on Biology Forums
Adding different Angular frequency w(t)? Adding different Angular frequency w(t)?
A solution is made by adding 0.100 mole of ethyl ether to 0.401 mole of ethyl alcohol. If the ... A solution is made by adding 0.100 mole of ethyl ether to 0.401 mole of ethyl alcohol. If the ...
What will the pH be upon adding .01 moles of HI? What will the pH be upon adding .01 moles of HI?
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: Transferring genes into plants Animation

For a complete list of videos, visit our video library