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 distinction variables and parameters of Vega Hedging?
Is it possible for a company with a positive net income and which does not distribute dividends to find itself in suspension of payments?
Criticize the flexible exchange rate regime from the point of view of the proponents of the fixed exchange rate regime. If exchange rates are randomly fluctuating, that may discourage international trade and suppor
Explain the tax considerations effect on the cost of equity and the cost of debt?
Explain the programme of study of Monte Carlo method.
What is Black–Scholes equation? Explain.
Normal 0 false false
Explain the modern methodology for calculating tail risk by using Extreme Value Theory.
Explain financial markets and why do they exist?
How can financial managers estimate the average tax rate?
18,76,764
1954047 Asked
3,689
Active Tutors
1433397
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!