Describe the Diversification Potential of Two Assets with a -0

question 79

Essay

Describe the diversification potential of two assets with a -0.7 correlation.What is the potential if the correlation is +0.7?

---

Definitions:

Mexican Peso

The official currency of Mexico, symbolized as $ or MXN.

Direct Investment

In international business, building facilities in another country.

Significant Facilities

Important physical buildings, plants, or other structures owned or used by a business to carry out its operations.

Swiss Franc

The official currency of Switzerland and Liechtenstein, known for its stability and often considered a "safe-haven" currency.