If two assets with return correlation coefficients less than one make up a portfolio, then the portfolio

Fantastic news! We've Found the answer you've been seeking!

Question:

If two assets with return correlation coefficients less than one make up a portfolio, then the portfolio does not take advantage of any diversification benefits.

True
False

Posted Date: May 19, 2024 10:16 PM

See More Questions

an unadjusted trial balance as of December 31, 2020. (6points)Account TitleBalanceDebitCreditCash36,910Accounts Receivable5,750Office Supplies1,400 PART1: The following transactions occurred for...
Coca-Cola recently reported dividends per share of U.S. $1.76 and a dividend yield of 2.7%. Pepsi reported dividends per share of U.S. $1.92 and a dividend yield of 2.9% for the same period. Which...
The U.S. Institute of Management Accountants has developed ethical standards for managerial accountants. Explain the importance of business ethics. Instructions Identify the four specific standards.
What is compartmentalizing?
The following information comes from the records of Tellys Supply: Beginning inventory.......$32,000 Inventory purchases.......85,000 Transportation-in..........4,300 An inventory count taken at...
The accountant for Atlantic Ltd. used the same accounting methods in the current year that she used in the previous year. What qualitative characteristic should the accountant use to support her...
In a certain county, of the registered voters, 60%, 30%, and 10% are Republicans, Democrats, and Independents, respectively. When those voters were asked about increasing military spending: 63% of...
Let's assume that the government decides that consumption of hamburger meat is harmful to the environment. As a result, they decide to implement a price floor of $10 on one pound of hamburger meat....
You own a portfolio that is 25 percent invested in Stock X, 40 percent in Stock Y, and 35 percent in Stock Z. The expected returns on these three stocks are 10 percent, 13 percent, and 15 percent,...
As of Monday morning, the ledger balance and the availablebalance for a firm was $3,000. During the day, the firm wrote threechecks in the amounts of $750, $225, and $452. The firm deposited acheck...
11. List 5 food safety responsibilities of a manager: 1. 2. 3. 4. 5. 12. Marketing Food Safety - List 4 ways to show staff and guest that a manager takes food safety seriously 1. 2. 3. 4.
What happens when the data you use to monitor progress, indicate that change is not happening or that the outcomes will not be met? (This response does not have to be related to your issue/action...
What is the saturation voltage of an npn transistor operating with Ic = 1 mA and /B = 1 mA if F = 50 and R = 2? What is the forced of tis transistor? What is the value of VBE if Is = 10-15 A?
A glass manufacturer produces hand mirrors. Each mirror is supposed to meet company standards for such things as glass thickness, ability to reflect, size of handle, quality of glass, color of...
Why has the importance of the internal audit function continued to grow?
Does filling out a questionnaire constitute an evaluation of internal controls?
Effective internal control requires organizational independence of departments. Organizational independence would be impaired in which of the following situations? (a) The internal auditors report to...

If two assets with return correlation coefficients less than one make up a portfolio, then the portfolio

Question:

Expert Answer:

Students also viewed these finance questions