Effect on riskiness of a portfolio
What will be the effect on riskiness of a portfolio if assets with negative correlations (even very low correlations) are taken together?
Expert
The success of diversification in reduction of risk relies on the degree of correlation between the two variables in question. Whenever the assets with negative or very low correlations are joined together in portfolios, the risk involved with the portfolios is greatly reduced.
What are the ways to choose the members of the board of directors of a corporation? Who do these board members owe their primary allegiance?
Explain different types of hedge.
What factors does Standard and Poor’s analyze in finding out the credit rating it assigns a sovereign government?In rating a sovereign government, S&P’s analysis centers on an assessment of the degree of political risk and econom
Illustrates the formula of Rho for the foreign exchange option value?
If taxable income is 82,900 and filing single, what is tax liability?
Explain swap broker ? A swap broker arranges a swap among two counterparties for fee without taking a risk position within the swap.
Explain the uncertain volatility.
Financing costs included into the capital budgeting analysis process. Explain.
Explain the term complete market.
Describe the long position in an options contract?An option is a contract giving the long the right to buy or sell a given quantity of an asset at a particular price at some time in the future, however not enforcing any obligation on him if the
18,76,764
1924992 Asked
3,689
Active Tutors
1433378
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!