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

Author Question: If an investor buys index mutual funds that hold the same stocks that make up major indices such as ... (Read 49 times)

Aimless0988

  • Full Member
  • ***
  • Posts: 158
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
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Aimless0988 on Aug 7, 2023

katrey9207

  • Full Member
  • ***
  • Posts: 139
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


Aimless0988

  • Member
  • Posts: 158
Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

TheNamesImani

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

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?

The longest a person has survived after a heart transplant is 24 years.

The Major Subcortical Connections of the Hippocampal Formation The Major Subcortical Connections of the Hippocampal Formation
Booker T. Washington in his office at Tuskegee Institute, 1900. Washington chose a policy of accommo Booker T. Washington in his office at Tuskegee Institute, 1900. Washington chose a policy of accommo
When connecting a starter tester such as a Sun VAT 45 to the vehicle, make certain that the ... When connecting a starter tester such as a Sun VAT 45 to the vehicle, make certain that the ...
Body Mass Index (IBM) Body Mass Index (IBM)
Maternal age is the major risk factor for autosomal trisomies of all types. By age 42, about one in Maternal age is the major risk factor for autosomal trisomies of all types. By age 42, about one in
Video: Metabolic Rate, Heat and Thermoregulation - response to heat and cold stresses

For a complete list of videos, visit our video library