The returns on Asset A are strongly, positively correlated with Asset B's returns; thus, holding the two assets together will
A)
significantly reduce portfolio risk.
B)
significantly increase portfolio risk.
C)
have little or no effect on portfolio risk.
D)
significantly increase portfolio return.
C
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________ is the belief that national prosperity is the result of a positive balance of trade, achieved by maximizing exports and minimizing imports
A) Positivism B) Imperialism C) Communism D) Mercantilism
Which of the following is an advantage of using stepwise regression compared to just entering all the independent variables at one time?
A) Stepwise will generally produce a model with a larger R-square value. B) The standard error of the estimate for a model constructed with stepwise regression will be larger than the one generated when all variables are entered at the same time. C) The stepwise regression allows the decision maker to observe the effects of multicollinearity more easily than when all the variables are entered at one time. D) There are no advantages of using stepwise regression over entering all variables at one time.