You purchased two stocks that are perfectly negatively correlated.
A) Your portfolio is well diversified, so you should face no risk whatsoever.
B) Even though you diversified the idiosyncratic risk away, your portfolio is still affected by systemic risks like a stock market crash.
C) Even though you diversified the systemic risk away, your portfolio is still affected by idiosyncratic risks like a stock market crash.
D) Your portfolio is not diversified; thus you face no systemic risk.
Question 2
When insurance companies offer fair insurance,
A) risk-averse agents always purchase it.
B) risk-neutral agents never purchase it.
C) risk-loving agents always purchase it.
D) nobody would purchase fair insurance.
How locust numbers might be correlated with predation.
Physical Health and Exercise Are Correlated—But Which Causes Which?
Conscientiousness is negatively correlated with a number of health-related behaviors. The higher the ...
Some IAC units are purchased with the housing as shown. Carbon buildup in these passages can cause ...
Atlantic Cod Stocks, Grand and George Banks
A portfolio earned -13%, 18%, 5%, 24%, and -5% in five successive years. What was the ...