Explain what is the perfect positive correlation

Assignment Help Accounting Basics
Reference no: EM131624302

Question: What is correlation, and why is it important with respect to portfolio returns? Describe the characteristics of returns that are

(a) positively correlated,

(b) negatively correlated, and

(c) uncorrelated.

Differentiate between perfect positive correlation and perfect negative correlation.

Reference no: EM131624302

Questions Cloud

Calculate the return and standard deviation of a portfolio : How do you calculate the return and standard deviation of a portfolio? Compare the calculation of a portfolio's standard deviation to that for a single asset.
Discuss the classification of law as civil law : Discuss the differences within the classification of law as civil law and criminal law.
Discuss about the sex offenders : What is this chapter reading about?What do you think was interesting about the topic? What can say to expand the chapter topic?
Examine two benefits of using sensitivity analysis : Examine two benefits of using sensitivity analysis in evaluating projects for selected company. How this approach can provide competitive advantage for company.
Explain what is the perfect positive correlation : What is correlation, and why is it important with respect to portfolio returns? Describe the characteristics of returns.
Discuss express vehicle services : Maxim Inc., a trucking business owned by Mortimer Maxim, charged its fuel purchases to an account at Express Vehicle Services
What is diversification : What is diversification? How does the diversification of risk affect the risk of the portfolio compared to the risk of the individual assets it contains?
Describe the potential range of risk and return : Discuss how the correlation between asset returns affects the risk and return behavior of the resulting portfolio.
Discuss economic system ethically defensible : According to many sources, such as the U.S. Census Bureau, Global Issues, and the Joint Center for Poverty Research, the United States has a widening gap

Reviews

Write a Review

Accounting Basics Questions & Answers

  Shackelford corporation acquired a patent from its founder

Shackelford Corporation acquired a patent from its founder, Jim Shackelford, in exchange for 50,000 shares of the company's nopar common stock. On the date of the exchange, the common stock had a fair value of $22 per share. Determine the cost of the..

  Hoehn manufacturing company experienced the following

having trouble with finding inventory results because im not sure where the 14000sold it for 25000. material cost

  Fuentes corporation reported net income

Fuentes Corporation reported net income of $152,000, declared dividends on common stock of $50,000, and had an ending balance in retained earnings of $360,000.

  Cowboy company wishes to sell a machine with a book value

cowboy company wishes to sell a machine with a book value of 40000. the income tax rate is 30.the machine is sold for

  What is the ending inventory value

In 2016, Harris Company had sales revenues of $2,400,000 (100,000 units@ $24), all in cash. What is the ending inventory value for 2016 under 1) FIFO method

  What is the total cash flow you expect to receive

You recently invested $12,000 of your savings in a security issued by a large company. The security agreement pays you 7 percent per year and has a maturity two years from the day you purchased it.

  How large a cash flow benefit did the depreciation provide

How large a cash flow benefit did the depreciation provide? If the cost of capital is 10 percent, what is the net present value of selecting a new machine?

  Use examples to illustrate your response

Explain the following statement: Changes in disposable income lead to movements along the consumption function while changes in wealth lead to a shift of the consumption function. Use examples to illustrate your response.

  How much does this differ from the actual direct labor cost

How much does this differ from the actual direct labor cost? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavor..

  Journal entry for sale

Orbit Airways purchased a baggage-handling truck for $41,000. Suppose Orbit sold the truck on December 31, 2008, for $28,000 cash, after using the truck for two full years and accumulating a depreciation of $16,000.

  What are they for the audit of jones company financial

Explain what is meant by determining the degree of correspondence between information and established criteria. What are the information and established criteria for the audit of Jones Company's tax return by an internal revenue agent? What are th..

  Describe how an auditor independence could be impaired

Describe how an auditor independence could be impaired if she performed IT design and implementation functions for her audit client. Likewise, how could an auditor involvement with internal audit outsourcing impair her independence with respect to..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd