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 87 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
Thanks for the timely response, appreciate it

robbielu01

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

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
Lymphatic vessels (green) pick up excess tissue fluid, purify it in lymph nodes, and return it to th Lymphatic vessels (green) pick up excess tissue fluid, purify it in lymph nodes, and return it to th
Male Turkmen in the wealthier half of the population had higher fertility rates than those in the po Male Turkmen in the wealthier half of the population had higher fertility rates than those in the po
A typical distillation curve. Heavier molecules evaporate at higher temperatures and contain more ... A typical distillation curve. Heavier molecules evaporate at higher temperatures and contain more ...
Return of oxygenated blood to the heart and entry into the aorta (red = oxygenated blood, blue = ... Return of oxygenated blood to the heart and entry into the aorta (red = oxygenated blood, blue = ...
Return to the icehouse Return to the icehouse
Video: Introduction to Macular Degeneration

For a complete list of videos, visit our video library