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

Author Question: In a two-asset portfolio, Stock A and Stock B have a measured correlationship of 0.60. Which of the ... (Read 92 times)

poopoo

  • Full Member
  • ***
  • Posts: 159
on: Aug 7, 2023
In a two-asset portfolio, Stock A and Stock B have a measured correlationship of –0.60. Which of the following best describes the impact on the portfolio of having “A” and “B” in the portfolio?

◦

A and B are perfectly negatively correlated, which reduces diversification.


◦

A and B are negatively correlated, which reduces diversification in the portfolio.


◦

A and B are negatively correlated, which improves diversification in the portfolio.


◦

A and B are perfectly negatively correlated, which improves diversification.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by poopoo on Aug 7, 2023

senorfranco

  • Full Member
  • ***
  • Posts: 164
Reply #1 on: Aug 7, 2023
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 56% of students answer this correctly


poopoo

  • Member
  • Posts: 159
Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review

kusterl

  • Member
  • Posts: 315
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Marine myths measured Marine myths measured
The dimensions of a typical bolt showing where sizes are measured. The dimensions of a typical bolt showing where sizes are measured.
Calculate the velocity of the red rock after collision Angle measured counterclockwise from the ... Calculate the velocity of the red rock after collision Angle measured counterclockwise from the ...
Stock Market Tracks Growth in GDP Stock Market Tracks Growth in GDP
Chiropractor (stock image) Chiropractor (stock image)
Distribution of skin color as measured by a reflectometer at a wavelength of 685 nm. The results are Distribution of skin color as measured by a reflectometer at a wavelength of 685 nm. The results are
Video: Enzyme structure - Properties of enzymes

For a complete list of videos, visit our video library