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

Author Question: In a two-asset portfolio, Stock A and Stock B have a measured correlationship of 0.60. Which of the ... (Read 101 times)

poopoo

  • Full Member
  • ***
  • Posts: 159
on: Aug 7, 2023
In a two-asset portfolio, Stock A and Stock B have a measured correlationship of –0.60. Which of the following best describes the impact on the portfolio of having “A” and “B” in the portfolio?

◦

A and B are perfectly negatively correlated, which reduces diversification.


◦

A and B are negatively correlated, which reduces diversification in the portfolio.


◦

A and B are negatively correlated, which improves diversification in the portfolio.


◦

A and B are perfectly negatively correlated, which improves diversification.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by poopoo on Aug 7, 2023

senorfranco

  • Full Member
  • ***
  • Posts: 164
Reply #1 on: Aug 7, 2023
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 56% of students answer this correctly


poopoo

  • Member
  • Posts: 159
Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review

amandanbreshears

  • Member
  • Posts: 320
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Pulmonary function test: spirometry. (a) Normal respiratory volumes, as measured during spirometry. Pulmonary function test: spirometry. (a) Normal respiratory volumes, as measured during spirometry.
After all valves have been properly measured and adjusted as necessary, start the reassembly process ... After all valves have been properly measured and adjusted as necessary, start the reassembly process ...
Particles measured, 1970 - 2008 and Trend in Organic Compound 1990 - 2007 Particles measured, 1970 - 2008 and Trend in Organic Compound 1990 - 2007
Stock Market Question Stock Market Question
Calculate the velocity of the red rock after collision Angle measured counterclockwise from the ... Calculate the velocity of the red rock after collision Angle measured counterclockwise from the ...
Calculate the velocity of the red rock after collision Angle measured counterclockwise from the ... Calculate the velocity of the red rock after collision Angle measured counterclockwise from the ...
Video: The Lagging Strand in DNA Replication and Replication in Action

For a complete list of videos, visit our video library