Combining two assets having perfectly positively correlated returns will result in the creation of a portfolio with an overall risk that ________
A) remains unchanged
B) decreases to a level below that of either asset
C) increases to a level above that of either asset
D) lies between the asset with the higher risk and the asset with the lower risk
D
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In the two-period model, suppose a household's income in the first period is $60,000, income in the second period is $100,000, and the real interest rate is 50 percent. Draw a diagram showing the budget constraint. Now, suppose the household's income in the second period increased to $120,000. Draw the new budget constraint. For the budget constraints you have drawn, be sure to show the values of the intercepts on each axis. Show your work.
What will be an ideal response?
Which of the following is not an "operating" budget?
a. sales budget b. production budget c. purchases budget d. capital budget
The tort of public disclosure of private facts requires:
a. publication. b. private information about either an individual or a corporation. c. a false statement. d. that the matter made public would be offensive and objectionable to a reasonable person.
What is co-branding? Provide an example of co-branding.
What will be an ideal response?