We note that the correlation between two stocks is quite high,p=0 96 Having both stocks in our portfolio likely increases the nsk of our portfolio returns O True O False

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 2AGP
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RUESTION 1
We note that the correlation between two stocks is quite high, p=0 96 Having both stocks in our portfolio likely increases the nsk of our portfolio returns
O True
O False
QUESTION 2
Diversification is a stratogy of including multiple investments/enterprses in our portfolios that move closely together in terms of returns or prices
O True
O False
Transcribed Image Text:RUESTION 1 We note that the correlation between two stocks is quite high, p=0 96 Having both stocks in our portfolio likely increases the nsk of our portfolio returns O True O False QUESTION 2 Diversification is a stratogy of including multiple investments/enterprses in our portfolios that move closely together in terms of returns or prices O True O False
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