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Other Fields Homework Help Economics Topic started by: rachel3430 on Nov 24, 2018



Title: You purchased two stocks that are perfectly negatively correlated.
Post by: rachel3430 on Nov 24, 2018
You purchased two stocks that are perfectly negatively correlated.
A) Your portfolio is well diversified, so you should face no risk whatsoever.
B) Even though you diversified the idiosyncratic risk away, your portfolio is still affected by systemic risks like a stock market crash.
C) Even though you diversified the systemic risk away, your portfolio is still affected by idiosyncratic risks like a stock market crash.
D) Your portfolio is not diversified; thus you face no systemic risk.


Title: You purchased two stocks that are perfectly negatively correlated.
Post by: amtw222 on Nov 24, 2018
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