Investment advisors sometimes recommend holding gold as part of an investors portfolio, because the value of gold

Question:

Investment advisors sometimes recommend holding gold as part of an investor’s portfolio, because the value of gold appears to be negatively related to that of the stock market. Thus, when the stock market goes down in value, the value of gold goes up in value, and some of the investor’s losses in the market are offset by gains in the value of her or his gold. The accompanying table shows data on annual rates of return for a gold mutual fund and for the S&P 500.

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

Step by Step Answer:

Related Book For  answer-question

Statistics For Business And Financial Economics

ISBN: 9781461458975

3rd Edition

Authors: Cheng Few Lee , John C Lee , Alice C Lee

Question Posted: