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?

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Definitions:

Inflection

Inflection in linguistics refers to the modification of a word to express different grammatical categories such as tense, mood, voice, aspect, person, number, gender, and case.

Mental Representations

Internal cognitive symbols that represent external reality, allowing individuals to think about objects, events, and conditions that are not physically present.

Moral Development

The process through which an individual learns to distinguish right from wrong, and to develop values and ethics.

Social Order

The set of linked social structures, practices, and norms that maintain and enforce certain patterns of relating and behaving within a society.