Why Does Total Portfolio Management Include Correlations Among Assets and Liabilities

question 14

Multiple Choice

Why does Total Portfolio management include correlations among assets and liabilities?

• A)Because the household is the sum of its separate assets less its liabilities
• B)Because the household is an operating enterprise in which the individual activities influence each other
• C)Because correlations measure the riskiness of individual assets and liabilities
• D)Both a and b
• E)Both b and c

---

Definitions:

Resolution

The process of resolving issues or the clarity and detail level of a digital image, measured in pixels per inch (PPI) for image quality or as formal decisions made by authoritative bodies.

Keep With Next

A formatting option in word processing software that prevents a paragraph from being separated from the following paragraph on different pages.

Page Break

A marker in a document that signals to the printer or display that the content following the marker should appear on a new page.

Widow And Orphan

Terms in typography referring to lines at the beginning or end of a paragraph that are left dangling at the top or bottom of a page, separated from the rest of the text.