You hold a portfolio of two assets. When the return on one asset is positive, the return on the other asset is negative. We can conclude that:
A) the correlation between the two assets in the portfolio is negative.
B) there is no correlation between the two assets in the portfolio.
C) the correlation between the two assets in the portfolio is positive.
D) none of the above.
Correct Answer:
Verified
Q22: Given that a stock has generated returns
Q23: If returns are normally distributed, the expected
Q24: If returns are normally distributed, the expected
Q25: If returns are normally distributed, the expected
Q26: Covariance measures:
A) how the returns of two
Q28: Domino's shares have an expected return of
Q29: Beef Stock returns have exhibited a standard
Q30: Which of the following expressions best describes
Q31: Risk is less effectively reduced through diversifying
Q32: Correlation is a measure of:
A) dispersion.
B) central
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents