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How Would You Assess the Risks Associated with a Portfolio

question 16

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How would you assess the risks associated with a portfolio of two companies that show perfect positive correlation?


Definitions:

Good Batteries

Batteries that pass quality tests and are deemed reliable for use in various devices.

Probability Model

A probability model is a mathematical representation of a random phenomenon, consisting of a sample space, events within the sample space, and probabilities associated with each event.

Random Variable X

A variable whose possible values are numerical outcomes of a random phenomenon.

Number Of Children

The count of offspring a person or population has.

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