Explain they minimize the risk of the that portfolio

Assignment Help Business Management

Reference no: EM1356757

When portfolio with asset W class and M are put together, they minimize the risk of the that portfolio because their risk move in opposite directions but they cannot eliminate the risk completely because there are many other factors out there that can affect both assets and bring them down. For example, if asset "A" is less riskier than asset "B", both of them can be combine together in a portfolio and since one is riskier than the other, they may move in opposite direction with respect to gains or loss and that can help neutralize, hence stabilize the portfolio from risk.

Can you give me an example of such a portfolio?

Reference no: EM1356757

Questions Cloud

Show commercialization of organ transplants : Briefly explain the arguments for and against the commercialization of transplants that you found in your research and formulate your position on the debate of whether or not the sale of organs should be permitted.

What total charge passes through the wire in time interval : A state highway patrol car radar unit uses a frequency of 9 x 10^9. what frequency difference will the unit detect from a car receding at a speed of 46.5 m/s from stationary patrol car.

Using type of behavior modification correctly : Explain the benefits of using this type of behavior modification correctly. Also explain some negative affects that can occur if the wrong behaviors are rewarded.

Overcoming entitlement in reward systems : Overcoming entitlement in reward systems and these rewards may invoke loyalty in only some employees but do you think that they have the capacity to do so for everyone and hence the question of universal impact? How do we ensure that a given reward..

Explain they minimize the risk of the that portfolio : Explain They minimize the risk of the that portfolio because their risk move in opposite directions but they cannot eliminate the risk completely

Completing a marketing campaign : Examine various organizational systems and evaluate how to integrate project management processes into various existing corporate structures.

What is the force exerted on it by static friction : An airplane is flying in a horizontal circle at a speed of 100 m/s. The 80.0-kg pilot does not want her radial acceleration to exceed 7g. (a) What is the least radius of the circular path? (b) At this radius, what is the force causing the centripe..

Determine the percentage change in demand : If there has been a 10% increase in consumer income between two periods, determine the percentage change in the demand for foreign travel?

Accessing psychological services : What do children and young people usually present with when accessing psychological services?

User Account

All Pages