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Author Question: If an investor buys index mutual funds that hold the same stocks that make up major indices such as ... (Read 18 times)

Aimless0988

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on: Aug 7, 2023

Question 1

If a portfolio consists of perfectly related stocks—that is, the correlation between the returns of the two stocks is +1.0—this diversification does nothing to reduce risk.

◦ true
◦ false

Question 2

If an investor buys “index” mutual funds that hold the same stocks that make up major indices such as the S&P/TSX 60, diversification can eliminate stock market risk even in a market crash.

◦ true
◦ false
Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by Aimless0988 on Aug 7, 2023

katrey9207

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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.
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Aimless0988

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

raili21

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Reply 3 on: Yesterday
Gracias!

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