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

Author Question: By incrementally adding securities to a portfolio (Read 35 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
Gracias!

xiazhe

  • Member
  • Posts: 331
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Checking gasoline for alcohol involves using a graduated cylinder and adding water to check if the ... Checking gasoline for alcohol involves using a graduated cylinder and adding water to check if the ...
Adding additional amounts of ethyl alcohol (ethanol) increases the frequency reading. Adding additional amounts of ethyl alcohol (ethanol) increases the frequency reading.
Adding propane to the air inlet of an engine operating in closed loop with a working oxygen sensor ... Adding propane to the air inlet of an engine operating in closed loop with a working oxygen sensor ...
Adding Calories and Nutrients Adding Calories and Nutrients
Adding a Poll on Biology Forums Adding a Poll on Biology Forums
Adding different Angular frequency w(t)? Adding different Angular frequency w(t)?
Video: Oxygen transport: association and dissociation & Factors that affect hemoglobin's saturation with O2

For a complete list of videos, visit our video library