Explain whether you agree or disagree with the following statement: "It is the covariance not the correlation that is important in the mean-variance model for portfolio selection."
What will be an ideal response?
One would disagree with the statement because the covariance and correlation can be defined in terms of one another. Specifically, the correlation between the returns for two assets is equal to the covariance of the two assets divided by the product of their standard deviations. This is given below:
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We see from this equation that an increase in the covariance occurs when there is also an increase in correlation. Thus, it follows that both are important in the mean-variance model for portfolio selection.
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A predictive analysis technique in which variables are used to predict the level of another by use of the straight-line formula, y= a + bx is:
A) chi-square B) Pearson correlation C) digression analysis D) regression analysis E) summarization analysis
Use the value chain as a framework to explain how the competitive advantage of differentiation can create products and/or services that are highly valued by customers.
What will be an ideal response?
Marketing is defined as a social and managerial process by which individuals and organizations obtain what they need and want through ________
A) research and development B) innovation and creativity C) manufacturing efficiencies D) value creation and exchange E) sales and revenue creation
Reference groups may be defined as
A) public opinion research firms employed by large public relations agencies. B) media outlets whose presence consumers can find both online and off-line. C) advertising sales organizations that recommend certain media vehicles to clients. D) external sources people look to for purchase decision-making cues. E) news aggregation sites with high click-through rates.