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Author Question: In a two-asset portfolio, Stock A and Stock B have a measured correlationship of 0.60. Which of the ... (Read 35 times)

poopoo

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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
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Marked as best answer by poopoo on Aug 7, 2023

senorfranco

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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.
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poopoo

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

komodo7

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Reply 3 on: Yesterday
Gracias!

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