A portfolio consisting of two risky securities can be made risk-less i.e, σp = 0, if:
A portfolio consisting of two risky securities can be made risk-less (i.e., σp = 0) if: The securities are perfectly negatively correlated. When two securities in a portfolio are perfectly negatively correlated, it means that they move in exact opposite directions. When one security's value goes up, the other's value goes down by the same amount, and vice versa. By combining two perfectly negatively correlated securities in a portfolio, the fluctuations cancel each other out, resulting in a risk-less portfolio. This is because any gain in one security offsets the loss in the other, and the overall portfolio value remains constant regardless of market movements.
According to Prof. Dicey, what are the three meanings or principles of the Rule of Law?
a. Supremacy of Law
b. Equality b...
The National Financial Reporting Authority shall consist of a chairperson, who shall be a person of eminence and having expertise in accountancy, auditi...
Statements made by persons to whom a party to the suit has expressly referred for information in reference to a matter in dispute are
__________is a person employed by, and acting under the control of, the original agent in the business of the agency
India was a party to Tokyo, Hague and Montreal Conventions:
Under the Arbitration and Conciliation Act, 1996, what is the primary purpose of arbitration?
Whether court has power to refer a dispute for arbitration when it is ongoing before it?
Warrant-case means a case relating to an offence punishable with :
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An admission is the best evidence against the maker if it is:
