Why does diversification fail to reduce risk when the returns of the two investments purchased are perfectly positively correlated?
What will be an ideal response?
If two returns are perfectly positively correlated, then what happens to one in terms of rising or falling will happen to the other.
Economics
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Describe the demand curve for a Giffen good
What will be an ideal response?
Economics
Suppose the demand for a particular product can be expressed as Q = 100/p. Calculate the total amount spent on this good when p = 10, 20, and 50
Can you make a generalization about the mathematical form of this demand curve and consumer behavior in this market?
Economics