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

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