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rachel3430 rachel3430
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Posts: 278
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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 82 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
Thank you, thank you, thank you!
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Just got PERFECT on my quiz
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2 hours ago
This site is awesome
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