Question: QUESTION 19 If other things remain the same, diversification is more effective when securities returns are positively correlated. securities returns are uncorrelated. securities returns are

QUESTION 19


If other things remain the same, diversification is more effective when


securities returns are positively correlated.


securities returns are uncorrelated.


securities returns are negatively correlated.


securities returns are high.



QUESTION 20


A measure of how much the returns of two risky assets move together is


variance


standard deviation


covariance


semi-variance




QUESTION 21


The optimal risky portfolio can be identified by finding ______ .


the minimum variance point on the efficient frontier


the maximum return point on the efficient frontier


the tangency point of the capital market line and the efficient frontier


none of the above answers is correct.



Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

QUESTION 19 Diversification is more effective when securities retu... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

In Problems 4.1 to 4.6, the input voltage V, is de and positive with the polarity shown. Specify how to implement the switches using a position minimal number of diodes and transistors, such that the...

Q:

This is a research study, having four variables. .1)Leader humility 2)Antisocial behavior 3)mindfulness 4) Self-efficacy I need help to w.rite Abstract of this study and need you to make the sense...

Q:

Northern Virginia Community College HOW MUCH FINANCIAL RISK SHOULD YOU TAKE? Mark D. D'Antonio Nova Southeastern University FORT LAUDERDALE, FLORIDA, U.S.A. Abstract A successful retirement...

Q:

13. What is a lower bound for the price of 3-month call option on a non- dividend-paying stock when the stock price is $50, the strike price is $45, and the 3-month risk-free interest rate is 8%?...

Q:

Multiple choice questions: QUESTION 13 As the debt ratio of a firm increases, its equity beta increases because of the added financial risk. True False 1.00000 points QUESTION 14 MM's proposition I...

Q:

QUESTION 21 Two of the possible explanations of the January effect are (1) tax-loss selling hypothesis, and (2) year-end window-dressing hypothesis. True False 1 points QUESTION 22 The systematic...

Q:

QUESTION 21 One implication of the tradeoff theories of capital structure decision is that firms that are likely to pay taxes at high rates should carry more debt than firms in lower tax brackets....

Q:

1 Both New York Stock Exchange and NASDAQ are examples of primary markets. True False 1 points QUESTION 2 Free cash flow hypothesis states that an increase in dividend should benefit the shareholders...

Q:

Ceteris paribus, diversification is more effective when securities are positively correlated securities returns are high O securities returns are negatively correlated O securities returns are...

Q:

Multiple Choice Questions: [i]. are the markets in which corporations raise new capital. (a) Primary markets (b) Secondary markets (c) Money markets (d) Mortgage markets [ii]. are the markets for...

Q:

Question 29 (1 point) The first thing an analyst should do when reviewing any financial statements load everything into a spreadsheet O check the financial market benchmarks look at the dates common...

Q:

Casey Company has five activity cost pools and two products. It expects to produce 200,000 units of its automobile scissors jack and 80,000 units of its truck hydraulic jack. Having identified its...

Q:

In an analysis of p-nitrophenol, several electrical responses (in current, mA) were recorded for known solutions of the substance (table below). Answer the questions that follow. log (Current)...

Q:

View Policies Current Attempt in Progress Which of the following is an option when it comes to investing in stock in forelgn markets? Global funds. International func: American Depositary Receipts....

Q:

Though all kind of resources of management are important but it is said that information and learning resources are pivotal to progress as organization. Justify.

Q:

Discuss the process of educational management with examples you observed in your institute.

Q:

1. Examine two (2) sources of outside equity capital available to entrepreneurs. Next, describe the source(s) you would use if you were creating a new company. Explain your rationale. 2. Analyze two...

Q:

Using the information below, prepare a return for Henry L. Carr. You will find the forms you need in the workbook. If you prefer using online, fillable forms, there are links at the end of the case...

Q:

Using 2019 IRS forms and the information below, William is 53 and Joyce is 51. They are married. William is a manager for ABC Corporation, a firm that manufactures and distributes widgets. Joyce is a...

Q:

6 Theory of Machines 5. A shaft carries five masses A, B, C, D and E which revolve at the same radius in planes which are equidistant from one another. The magnitude of the masses in planes A, C and...

Q:

Use the graph below to answer the following questions: a. At 60 units of the activity, marginal benefit is $___________ and marginal cost is $___________.b. Adding the 60th unit of the activity...

Q:

Look again at Zicon Manufacturinga firm that produces products that are substitutes in consumption. Suppose that the production manager changed the estimates of the total and marginal cost functions...

Q:

In the accompanying figure, labor costs $100 per unit. The manager wants to produce 2,500 units of output. Answer the following questions: a. At point A, the MRTS is__________ (less than, greater...

Q:

Toastem manufactures small appliances. The costs of manufacturing these appliances are listed below. Toastem has received a special order for 2,400 toasters from an appliance retailer whose usual...

Q:

1. Marbury Corporation compiled the following data from last year: Find the high and low points. Units Cost January 25,000 $325,000 February 27,000 $315,000 March 35,000 $378,000 April 50,000...

Q:

Your firm has collected the following information on unit sales and total costs for the past 6 months: Unit sales Total costs July 23,000 $810,000 August 18,000 $600,000 September 15,000 $625,000...