« previous next »

Author Question: If two events are perfectly positively correlated, then A) diversification is not necessary since ... (Read 99 times)

SO00

  • Hero Member
  • *****
  • Posts: 568
on: Jul 1, 2018
If two events are perfectly positively correlated, then
 
  A) diversification is not necessary since there is no risk.
  B) diversification eliminates all risk.
  C) diversification does not reduce risk at all.
  D) diversification only cuts the risk in half.

Question 2

The ability of diversification to reduce risk
 
  A) is greater the more negatively correlated the two events are.
  B) is greater the more positively correlated the two events are.
  C) is greater the more uncorrelated the two events are.
  D) is greater the more risk averse the individual is.
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


cpetit11

  • Sr. Member
  • ****
  • Posts: 321
Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Eye ball perfectly labelled (map) Eye ball perfectly labelled (map)
(a) The relative age ranges of different dating techniques depend upon the half-life of the system u (a) The relative age ranges of different dating techniques depend upon the half-life of the system u
El Niño events release energy El Niño events release energy
Electrical Events Electrical Events
The major events in meiosis in an animal cell with metaphase The major events in meiosis in an animal cell with metaphase
A 2.8-kg tool can move on a perfectly smooth ramp that slants at 42° above the horizontal. ... A 2.8-kg tool can move on a perfectly smooth ramp that slants at 42° above the horizontal. ...
Video: Nervous pathway to the Neuromuscular (NMJ)

For a complete list of videos, visit our video library