Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the dependence structure between the returns of fi

The dependence structure between the returns of financial assets plays an important role in risk...

70.2K

Verified Solution

Question

Finance

The dependence structure between the returns of financial assets plays an important role in risk measurement. For liquid markets, which of the following statements is incorrect? a. With short time horizons (3 months or less), correlation estimates are very stable. b. Even if the return distributions of two assets have a correlation of zero, the returns of these assets are not necessarily independent. c. Correlation is a valid measure of dependence between random variables for only certain types of return distributions. d. Copulas make it possible to model marginal distributions and the dependence structure separately.

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

Homepage Northland 10 6 Points W Assignment 12 Conic DETAILS 6 4 2 y The...

Basic Math
Q

Using the following information to answer the following questions? Both Bond A and Bond B have 8...

Finance
Q

Asymmetrical violence (including terrorism) has historically accompanied eras of global economic expansion and rapid technological change. in...

Psychology
Q

Is there any exception to an employer having to accommodate an employee’s disability? If so, what...

General Management
Q

57 In the circuit shown if a conducting wire connected between points A and B...

Physics
Q

23 Two identical metallic spherical shells A and B having charges 40 and 10Q are...

Physics
Q

Two particles Y and Z emitted by a radioactive source at P made tracks in...

Physics
Q

Forever Flow Inc. Comparative Balance Sheet December 31,2024 and 2023 \table[[Assets,2024,2023,\table[[Increase],[Decrease]]],[Cash .......................................,$84,000,$66,000,$18,000

Accounting
Q

Exercise 14-13 Preparing a cash budget LO 14-5 The accountant for Erica's Dress Shop prepared...

Accounting
Q

Determine the amount of taxable income that should be reported by a cash-basis taxpayer in...

Accounting
Q

What is the purpose of keeping a change fund in a business? Answer ...

Accounting
Q

Need help on the last three tabs please DeZurik Corporation had the following...

Accounting