Assume Danny is considering combining two investments to form a portfolio, and he is very concerned with the risk that will result from the combination. If he wants to attain the greatest effect from diversification, he would prefer that the assets _____.

A. are negatively related
B. are positively related
C. are not related at all
D. have a negative coefficient of variation
E. have a positive coefficient of variation


Answer: A

Business

You might also like to view...

Standards of conduct that are considered good or virtuous are called ________

A) issues B) conclusions C) analogies D) ethical norms

Business

The modern approach follows the common law rule in holding that a corporation cannot commit a criminal act

a. True b. False Indicate whether the statement is true or false

Business

Maple Corp. had net sales of $201,550 for the year ended December 31, 2017. Its beginning and ending total assets were $88,200 and $112,500, respectively. Determine Maple's asset turnover ratio for the year ended December 31, 2017

A) 0.5 times B) 2.29 times C) 1.11 times D) 2.01 times

Business

Union unfair labor practices under the Federal Service Labor-Management Relations Act include:

a. threatening the employees. b. discrimination on the basis of age. c. child labor. d. refusing to negotiate in good faith.

Business