Examlex

Solved

What Is the Possible Range for a Correlation Coefficient? for Purposes

question 63

Essay

What is the possible range for a correlation coefficient? For purposes of diversification,what type of correlation coefficient among asset returns is preferred by investors? Explain why.


Definitions:

Neoliberal Globalization

A process emphasizing the global integration of economies through free-market policies, reduction of trade barriers, and increased capital flows, under the influence of neoliberal ideologies.

Democratic Globalization

The spread of democracy around the world and the integration of democratic norms and values into international relations and institutions.

Decreases Political Stability

A reduction in the ability of a governmental system to provide consistent governance and policy, often leading to uncertainty, unrest, or conflict.

Basic Needs

Fundamental requirements necessary for individuals to live a healthy and satisfactory life, such as food, water, shelter, education, and healthcare.

Related Questions