« previous next »

Author Question: The creation of a portfolio by combining two assets having perfectly positively correlated returns ... (Read 71 times)

ENagel

  • Hero Member
  • *****
  • Posts: 540
on: Jul 10, 2018
The creation of a portfolio by combining two assets having perfectly positively correlated returns cannot reduce the portfolio's overall risk below the risk of the least risky asset.
 
  Indicate whether the statement is true or false

Question 2

The risk of a portfolio containing international stocks generally contains less nondiversifiable risk than one that contains only domestic stocks.
 
  Indicate whether the statement is true or false


LVPMS

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jul 10, 2018
Answer to Question 1

TRUE

Answer to Question 2

TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

Nitroglycerin is used to alleviate various heart-related conditions, and it is also the chief component of dynamite (but mixed in a solid clay base to stabilize it).

Seafloor Spreading and Creation of New Ocean Crust Seafloor Spreading and Creation of New Ocean Crust
Walter Thompson saw his assets evaporate during the stock market collapse in 1929. Desperate for ... Walter Thompson saw his assets evaporate during the stock market collapse in 1929. Desperate for ...
Michelangelo, The Creation of Adam (unrestored), ceiling of the Sistine Chapel. Michelangelo, The Creation of Adam (unrestored), ceiling of the Sistine Chapel.
Positively charged chromatography resin bead Positively charged chromatography resin bead
Common Root Words and Combining Forms Cont Common Root Words and Combining Forms Cont
Common Root Words and Combining Forms Cont. Common Root Words and Combining Forms Cont.
Video: Vasectomy

For a complete list of videos, visit our video library