Selcting best option for portfolio

Reference no: EM1347049

You are considering investing in two stocks to form a portfolio. You are very risk averse (you do not like risk). Which one of the following stock combinations will you choose for your portfolio (these are your only options)?
Answer
Stocks C & D which both have a beta of 2.0.
Stocks A & B which have correlation coefficient of -1.0.
Stocks G & H which have a correlation coefficient of +1.0.
Stocks E & F which have a correlation coefficient of 0 (zero).

Changes in interest rates represent the type of risk which can be categorized as:
Answer
Unsystematic risk
Firm-specific risk
Non-diversifiable risk
Economics risk

Reference no: EM1347049

Questions Cloud

Communication across the corporation : Do you believe that a company should have strong communication across the corporation nationally and internationally in order to successfully develop a technology solution

Target costing in japan : What is the effect of target costing and value engineering on the use of variances?

Converting binary numbers in decimal : Convert the given binary numbers in decimal: 101110; 1110101; and 110110100. Convert the given decimal numbers to bases indicated.

Excellence in business communication : positive or a negative example or an example in which a turnaround took place

Selcting best option for portfolio : Suppose you are planning investing in two stocks to form a portfolio. Assume you do not like risk. Which one of given stock combinations will you select for your portfolio?

Question related to interpersonal communication : Part of the management track is about developing effective interpersonal communication.

Describe effective communication techniques : Describe the goals of various statistical methodologies conceptually

Activity based costing of johnson and johnson : Recognize a product or service in your organization which could use ABC. You can as well use this technique for selling and administrative costs.

Example on professional communication : The use of contract trainers has had mixed results and two of the four trainers received relatively low ratings from the students.

User Account

All Pages