Examlex

Solved

A Portfolio Consisting of Two Securities with Perfect Negative Correlation

question 11

Essay

A portfolio consisting of two securities with perfect negative correlation in the proper proportions can be shown to have a standard deviation of zero. What makes this riskless portfolio impossible to achieve in the real world?


Definitions:

Examples

Specific instances provided to illustrate a point, clarify, or support arguments in explanations.

Illustrations

Visual representations such as drawings or diagrams used to explain or adorn textual information.

Pre-reading

Strategies or activities performed before reading a text, aimed at improving comprehension or setting a purpose for reading.

Summarize

To present the main points or essence of a text or speech in a concise and brief form.

Related Questions