This topic contains a solution. Click here to go to the answer

Author Question: In a two-asset portfolio, Stock A and Stock B have a measured correlationship of 0.60. Which of the ... (Read 43 times)

poopoo

  • Full Member
  • ***
  • Posts: 159
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.



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
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
Gracias!


alexanderhamilton

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

For a complete list of videos, visit our video library