« previous next »

Author Question: If two events are perfectly positively correlated, then A) diversification is not necessary since ... (Read 61 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?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

The events in inflammation. The events in inflammation.
A chronogram indicates the timing of evolutionary events A chronogram indicates the timing of evolutionary events
An electrocardiogram (ECG, EKG) is a commonly used procedure in which the electrical events associat An electrocardiogram (ECG, EKG) is a commonly used procedure in which the electrical events associat
Electrocardiography. (a) Electrodes are placed on the patient’s chest to record the electrical event Electrocardiography. (a) Electrodes are placed on the patient’s chest to record the electrical event
Major Events in the History of Psychology Major Events in the History of Psychology
Major Events in the History of Psychology (4 of 6) Major Events in the History of Psychology (4 of 6)
Video: Muscular System Animation

For a complete list of videos, visit our video library