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rachel3430 rachel3430
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5 years ago
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.
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
Read 104 times
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amtw222amtw222
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Posts: 179
5 years ago
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rachel3430 Author
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5 years ago
Helped a lot
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Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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2 hours ago
this is exactly what I needed
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