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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.
Rahul deposits a sum of money at an annual compound interest rate of 15%. After 1 year, the interest accumulated amounts to Rs. 180. If he increases his...
Anita and Rohan each invested a sum of ₹12,000 for 2.5 years at 20% compound interest per annum. However, while for Anita the interest was compounded ...
The compound interest on a certain amount for 2 years at 4% per annum is ₹ 1,428 if interest is compounded annually. Find the simple interest on that ...
Rs.13000 was invested for 2 years in scheme A which offers compound interest at 10% per annum. What approximate interest earned on investing the amount ...
Amit invested 'x' on simple interest at 12% for 7 years and (x + 400) on compound interest at 10% p.a for 2 years. At the end of nine years, he will rec...
A person deposited Rs. 30,000 in a savings account that earned simple interest at a rate of 'x%' per annum. After 2 years, the total amount in the accou...
Ankit invested a total of Rs. 63,000 between two SIPs: 'P', offering 10% compound interest compounded annually, and 'Q', offering 12% simple interest pe...
Mr. X invested Rs. 1200 in two schemes, A and B in the ratio of 7:3, respectively. Scheme A and B are offering simple interest at rate of 9% per annum a...
What sum of money will become Rs.1352 in 2 years at 4 percent per annum compound interest?
The ratio of the sums invested by ‘X’ and ‘Y’ in SIP ‘M’ and ‘N’ is 7:4, respectively. If ‘X’ invested Rs. 6300 more than ‘Y’, t...