Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 3. now, we form a portfolio with two assets. both

3. Now, we form a portfolio with two assets. Both are risky asset. How can...

80.2K

Verified Solution

Question

Finance

image
3. Now, we form a portfolio with two assets. Both are risky asset. How can we get the return and the variance of this portfolio? Please show the formula to get them. By what value of the correlation between them can these two assets perfectly hedge each other's risk? 4. Please use the following equation to explain the mechanism of diversification. And which part of risk can be eliminated? (The following equation is on slide 33 of chapter 7.) op n-1 72 + COV n n

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Identify the antagonist muscles that are activated during the following resistance training exercises: Lying neck flexion Lateral neck...

Medical Sciences
Q

A mass that weight 15lb15lb stretches a spring 8in8in. The system is acted on by an...

Advance Math
Q

Assume the role of an expert witness who has been asked by a court of law...

Accounting
Q

EVELOPING PROOF For Exercises 1 10 state whether each statement is ways true sometimes true...

Geometry
Q

db are A a 68 b parallel What is the measure of 27 if 22...

Geometry
Q

A boat travels between two cities that are 7 miles apart. When going downstream, with...

Basic Math
Q

Simplify the expression to a + bi form:(-7-3i)(11- 8i)

Basic Math
Q

Marin Company makes several products, including canoes. The company reports a loss from its canoe...

Accounting
Q

Research some organizations that have a membership that would relate to accounting. List one professional...

Accounting
Q

Classify the following items on a Statement of Cash Flows: I. Receipts from sales of...

Accounting
Q

Problem Two: With the goal of starting your own business, you plan to save $5,250...

Finance
Q

Barnett Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which...

Accounting