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

Author Question: By incrementally adding securities to a portfolio (Read 40 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
Excellent

carlsona147

  • Member
  • Posts: 341
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

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).

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

A, A nurse is adding a medication to an IV line as a piggyback A, A nurse is adding a medication to an IV line as a piggyback
Adding additional amounts of ethyl alcohol (ethanol) increases the frequency reading. Adding additional amounts of ethyl alcohol (ethanol) increases the frequency reading.
Adding Calories and Nutrients Adding Calories and Nutrients
Adding fiber to the diet Adding fiber to the diet
A portfolio earned -13%, 18%, 5%, 24%, and -5% in five successive years. What was the ... A portfolio earned -13%, 18%, 5%, 24%, and -5% in five successive years. What was the ...
Grade 1 math Adding doubles Grade 1 math Adding doubles
Video: Cardiac Cycle (Part 2 of 4)

For a complete list of videos, visit our video library