Why do most assets of the same type show positive covariances of returns with each other? Would
Fantastic news! We've Found the answer you've been seeking!
Question:
Why do most assets of the same type show positive covariance’s of returns with each other?
Would you expect positive covariance of returns between different types of assets such as returns on Treasury bills, General Electric Common Stock, and commercial real estate? Why or why not?
Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
Posted Date: