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 39 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

connor417

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

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

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

Marine myths measured Marine myths measured
Examples of characteristics measured by palpation Examples of characteristics measured by palpation
After all valves have been properly measured and adjusted as necessary, start the reassembly process ... After all valves have been properly measured and adjusted as necessary, start the reassembly process ...
Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s
Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ... Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ...
A portfolio earned -13%, 18%, 5%, 24%, and -5% in five successive years. What was the ... A portfolio earned -13%, 18%, 5%, 24%, and -5% in five successive years. What was the ...
Video: Olfaction. or the sense of smell

For a complete list of videos, visit our video library