Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. explain the following statement: “as asset held

Explain the following statement: “As asset held as part of a portfolio is generally less risky...

60.1K

Verified Solution

Question

Finance

Explain the following statement: “As asset held as partof a portfolio is generally less risky than the same asset held inisolation.”

Answer & Explanation Solved by verified expert
3.6 Ratings (574 Votes)
The riskiness of a portfolio is measured by the portfolio variance or standard deviation of the portfolio The formula to calculate the variance of a portfolio consisting of two assets A and B is given by    See Answer
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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Explain the following statement: “As asset held as partof a portfolio is generally less risky than the same asset held inisolation.”

Other questions asked by students

Q

Describe the structures and processes involved in genetic transmission.

Psychology
Q

History question(there should be a history option haha) How did the Cold War affect civil liberties in the...

Psychology
Q

Answer the following questions with reference and citations: 1. Explain why consumer market testing might not...

General Management
Q

Based on your observations regarding beak depth and wing length, predict what might happen to...

Biology
Q

Same mass of copper is drawn into two wires of radius 1 mm and 3...

Physics
Q

Use a calculator to solve the following equation for 8 on the interval 12 12...

Basic Math
Q

Distribute Date 10 02 2023 Due Date 10 05 2023 1 Determine the moist and...

Basic Math
Q

A packet of gummy candy contains two strawberry gums, four lime gums, four black currant...

Basic Math
Q

1 x 1 1 3 using 8 approximating rectangles and right endpoints Estimate the area...

Calculus
Q

Shaylee Corp has $2.20 million to invest in new projects. The company's managers have presented...

Accounting
Q

Underwood Company's ledger at the end of the current year shovs Accounts Receivable of $150,000....

Accounting
Q

Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours....

Accounting