Question

In order to diversify risk, investors are often encouraged to invest in assets whose returns have either a negative relationship or no relationship. The annual return data on two assets is shown below.
Return A ..... Return B
−20% ...... 8%
−5 ........ 5
18 ........ 21
15 ........ 22
−12 ....... 2

Construct a scatter plot. For diversity purposes, would the investor be wise to include these assets in her portfolio? Explain.



$1.99
Sales0
Views33
Comments0
  • CreatedJanuary 28, 2015
  • Files Included
Post your question
5000