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

Author Question: Combining two assets having perfectly negatively correlated returns will result in the creation of a ... (Read 84 times)

Marty

  • Hero Member
  • *****
  • Posts: 553
on: Jul 10, 2018
Combining two assets having perfectly negatively correlated returns will result in the creation of a portfolio with an overall risk that ________.
 
  A) remains unchanged
  B) decreases to a level below that of either asset
  C) increases to a level above that of either asset
  D) stabilizes to a level between the asset with the higher risk and the asset with the lower risk

Question 2

The annualized NPV of Project A is ________. (See Table 11.11 )
 
  A) 22,674
  B) 12,947
  C) 38,227
  D) 21,828


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

swimkari

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jul 10, 2018
Answer to Question 1

B

Answer to Question 2

A


Marty

  • Member
  • Posts: 553
Reply 2 on: Jul 10, 2018
Excellent

Dnite

  • Member
  • Posts: 297
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

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 training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

As a result of sharing its environment with humans, this macaque had the opportunity to steal an ast As a result of sharing its environment with humans, this macaque had the opportunity to steal an ast
Seafloor Spreading and Creation of New Ocean Crust Seafloor Spreading and Creation of New Ocean Crust
The Creation of Gametes Through Meiosis The Creation of Gametes Through Meiosis
Pulmonary Congestion, which May Result from Congestive Heart Failure Pulmonary Congestion, which May Result from Congestive Heart Failure
(a) Monozygotic (MZ) twins result from the fertilization of a single egg by a single sperm. After on (a) Monozygotic (MZ) twins result from the fertilization of a single egg by a single sperm. After on
Demographic transition model for changes in population growth rates and sizes, correlated with long- Demographic transition model for changes in population growth rates and sizes, correlated with long-
Video: Allergic Rhinitis

For a complete list of videos, visit our video library