Two stocks can be combined to form a portfolio that is risk free (i.e., has no risk) if the stocks are perfectly negatively correlated (r = ?1.0) with each other.
Answer the following statement true (T) or false (F)
True
By combining two securities having a perfectly negative correlation, the risk of a portfolio can be eliminated. See 8-3: Portfolio Risk—Holding Combinations of Investments
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Cash generated from operating activities has traditionally been computed by combining the direct and the indirect methods
a. True b. False Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. Price uncertainty is one of the uncertainties in capacity planning. 2. Pratt offered various financial incentives for completing on time, as well as financial and legal penalties for not completing on time, to address concerns about on-time delivery. 3. A requirement for effective strategic capacity planning is to have one contract that governs different supply chain partners. 4. The advantage of outsourcing is the opportunity for the primary firm to avoid responsibility for product failure due to outsourced production.
A pilot test ______.
a. is a small-scale study conducted to assess the feasibility of a product or service b. is a study restricted to the field of aviation c. is a the launch of a single, “solo” product d. is a prototype of a product
Which of the following are reasons why companies move into international operations?
A. To take advantage of lower production costs in regions where labor costs are relatively low. B. To develop new markets for the firm's products. C. To better serve their primary customers. D. Because important raw materials are located abroad. E. All of the above.