Question
A portfolio consisting of two risky securities can be
made risk-less i.e, σp = 0, if:Solution
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.
In a certain code language,
A + B means ‘A is the wife of B’.
A − B means ‘A is the son of B’.
A × B means ‘A is the h...
What should come in place of the question mark (?) in the given series based on the English alphabetical order?
AOS, DMV, GKY, JIB, ?
If the signs – and + are interchanged, then which of the following equations would be correct?
Select the term from among the given options that can replace the question mark (?) in the following series.
2A, 3C, 5F, 7J, 11O, ?
‘A # B’ means ‘A is the brother of B’.
‘A @ B’ means ‘A is the daughter of B’.
‘A & B’ means ‘A is the husband of B�...
In a row of Cars, Maruti is 8th from the left and Toyota is 17th from the right. If they interchange their positions, Maruti becomes 14th from left. Ho...
Select the figure that will replace the question mark (?) in the following figure series.
What will come in the place of the question mark (?) in the following equation, if '+' and '–' are interchanged and '×' and '÷' are interchanged?
Seven people, U, M, K, G, B, R and D are sitting in a straight line, facing south. Only two people sit to the left of B. M sits third to the right of G....
In a classroom, there are 5 rows, and 5 children Akshay, Vineet, Sujeet, Guddu and Mangal are seated one behind the other in 5 separate rows as follows:...
