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

Author Question: Two assets have a coefficient of correlation of -.4. Asset A has a standard deviation of 20% and ... (Read 28 times)

ega16

  • Full Member
  • ***
  • Posts: 145
on: Mar 29, 2022
Two assets have a coefficient of correlation of -.4. Asset A has a standard deviation of 20% and asset B has a standard deviation of 40%. Relative to holding a portfolio consisting of 100% of Asset B, what happens to risk if you combine these assets into a 50-50 weighted portfolio?
◦ Combining these assets will increase risk.
◦ Combining these assets will have no effect on risk.
◦ Combining these assets may either raise or lower risk.
◦ Combining these assets will reduce risk.
Fundamentals of Investing ¦ Zutter, Smart ¦ 14th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by ega16 on Mar 29, 2022

SphnxKickin

  • Full Member
  • ***
  • Posts: 165
Reply #1 on: Mar 29, 2022
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.
Answer Preview
Only 29% of students answer this correctly


ega16

  • Member
  • Posts: 145
Reply 2 on: Mar 29, 2022
YES! Correct, THANKS for helping me on my review

atrochim

  • Member
  • Posts: 331
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Deviation of Normal Posture Deviation of Normal Posture
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 ...
standard reduction potential (Eo), the greater the tendency of the oxidized form of a redox couple standard reduction potential (Eo), the greater the tendency of the oxidized form of a redox couple
How to fully analyze the standard and factored form of a quadratic equation (Question 2) How to fully analyze the standard and factored form of a quadratic equation (Question 2)
Ulnar and radial deviation of the wrist Ulnar and radial deviation of the wrist
A blade and assorted plates for a standard grinder A blade and assorted plates for a standard grinder
Video: Types of Shock (Part 2 of 2)

For a complete list of videos, visit our video library