What Role Does the Correlation of Two Assets Play in Computation

question 72

Essay

What role does the correlation of two assets play in computation of the expected return of the two asset portfolio?

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Definitions:

Critical Distance

Critical distance refers to the ability to analyze and evaluate a culture, society, or situation objectively, without allowing personal biases or assumptions to influence judgment.

Sociologists

Scientists who study the development, structure, and functioning of human society, including social relationships, institutions, and behaviors.

Macrosociological Theorists

Sociologists who focus on the study of large-scale social structures and processes, as opposed to individuals or small groups.

Durkheim

A French sociologist best known for his foundational contributions to the field of sociology, including his theory on the social causes of suicide.