How covariance-correlation help to create diversification, Finance Basics

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How covariance-correlation help to create diversification

Diversification in an investment portfolio is a significant concept for creating the highest return for the least amount of risk. To create this diversification portfolio managers consider the covariance and correlation of investments.

Explain how covariance and correlation help to create this diversification.

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Finance Basics: How covariance-correlation help to create diversification

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Finance Basics: How covariance-correlation help to create diversification

Reference No:- TGS050086

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Recent Questions Asked Finance Basics

Q : Identify a specific audience and write an application

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Q : How covariance-correlation help to create diversification

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: How covariance-correlation help to create diversification

Reference No:- TGS050086

Recent Questions Asked Finance Basics

Q : Identify a specific audience and write an application

Q : He takes what he wants rather than earns it

Q : A story or myth, that seems to present itself as a woman''s

Q : Can you tell me why this study

Q : How covariance-correlation help to create diversification

Q : Determine the amount rex must include in gross income

Q : Estimate expected return and risk of stock

Q : Medical associates cost of equity estimate

Q : Prepare all journal entries necessary through june

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