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Negative Correlation of Returns of a Proposed New Branch with Returns

question 98

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Negative correlation of returns of a proposed new branch with returns of the existing branch offices and other assets can serve to lower the overall bank's riskiness and is an important justification for branch establishment.This is referred to as geographic diversification effect.


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The process of converting an original message into a form that cannot be read by anyone except the intended recipient.

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The technology of transmitting signals, voice, and music by modulating electromagnetic waves without wires.

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An object that has been intentionally placed into orbit around the Earth or another celestial body.

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A type of electromagnetic radiation with wavelengths ranging from one meter to one millimeter; used in a variety of technologies, including microwave ovens that heat food.

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