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

Author Question: The portfolio expected return of two investments: a. will be higher when the covariance is zero. ... (Read 147 times)

B

  • Hero Member
  • *****
  • Posts: 570
on: Jun 24, 2018
The portfolio expected return of two investments:
 a. will be higher when the covariance is zero.
  b. will be higher when the covariance is negative.
  c. will be higher when the covariance is positive.
  d. does not depend on the covariance.

Question 2

The variance of a portfolio of two investments will be equal to the sum of the variances of the two investments when the covariance between the investments is zero.
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

aburgess

  • Sr. Member
  • ****
  • Posts: 361
Reply #1 on: Jun 24, 2018
Answer to Question 1

D

Answer to Question 2

T


B

  • Member
  • Posts: 570
Reply 2 on: Jun 24, 2018
Excellent

daiying98

  • Member
  • Posts: 354
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Muskox populations remain in the Arctic all year, though they migrate to higher elevations in the wi Muskox populations remain in the Arctic all year, though they migrate to higher elevations in the wi
Allen Test: A patent ulnar artery reveals the return of palm perfusion despite radial artery compres Allen Test: A patent ulnar artery reveals the return of palm perfusion despite radial artery compres
Increasing access to care for teen mothers is important because they have a higher rate of pregnancy ... Increasing access to care for teen mothers is important because they have a higher rate of pregnancy ...
If the gauge reading is now much higher than the first test results, then the cause of the low ... If the gauge reading is now much higher than the first test results, then the cause of the low ...
The demand for oil can be reduced significantly with the introduction of new higher vehicle mileage The demand for oil can be reduced significantly with the introduction of new higher vehicle mileage
Suicide rates in Canada are more than three times higher for males than for females Suicide rates in Canada are more than three times higher for males than for females
Video: Sperm Formation

For a complete list of videos, visit our video library