User Account

All Pages

Can variance of portfolio smaller than variance of returns

Assignment Help Microeconomics
Reference no: EM131017518

Assume there are only two assets in a portfolio. If this portfolio has a positive weight for each asset, can its (portfolio.s) variance be greater than the variance of returns on the asset in the portfolio that has the higher variance of the two? Explain. Can the variance of the portfolio be smaller than the variance of returns on the asset in the portfolio that has the smaller variance? Explain.

Reference no: EM131017518

Questions Cloud

How much time should be spent studying for each class : How much time should be spent studying for each class? That is, maximize GPA by determining E* and U* subject to the 12 hour study time constraint. Did this allocation of study time maximize or minimize your GPA?
Consumer''s decision on a technologyrelatedpurchase : Identify a print, TV or Web advertisement aimed at influencing a consumer's decision on a technologyrelatedpurchase. Analyze the visuals and the words in the ad to describe how the product is presented.How effectively does the ad meet its goals?
How would they collect the data : When a firm estimates the demand for its product what data collection problems would you anticipate having. For example, at GM how hard is it to list the non-price determinate of demand for its cars? Can they obtain the right set of data? How woul..
Express the equation in slope-intercept form : In the problem below, assume that the relationship can be expressed as a linear equation in two variables, and use the given information to determine the equation. Express the equation in slope-intercept form.
Can variance of portfolio smaller than variance of returns : Assume there are only two assets in a portfolio. If this portfolio has a positive weight for each asset, can its (portfolio.s) variance be greater than the variance of returns on the asset in the portfolio that has the higher variance of the two? ..
What are the information requirements of the furniture buyer : What are the information requirements of the furniture buyer? How do they buy? What factors are important? How do the elements of the purchase process model (awareness, consideration, preference, purchase) apply
Construct the series and parallel inductive reactive circuit : Discuss why it is often stated that inductors and capacitors are "dual" elements. Include similarities and differences that must be taken into account when performing calculations with each element and how these two elements are capable of exchang..
Select the best measure of central tendency : For each of the following data sets, select the best measure of central tendency, explain why your selection is the best measure, and then compute that measure of central tendency for the data.
Supporting idea has at least 2 pieces of evidence : Submit a Working Outline for your Research Paper.  Make sure that it meets the following guidelines: - It's in APA format - Is written in complete sentences

Reviews

Write a Review

Microeconomics Questions & Answers

  Histories of the mnes-industries

Histories of the following MNEs/industries, from their beginings to the present day, such Fedex, Amazon, NYSE (New York Stock Exchange), Pharamaceutical Industry, General Electiric, Lenovo. Compare and contrast the history of at least two of these..

  The income velocity of money

The income velocity of money and the implications for long run monetary policy.

  Most liquid component of the money supply

Which of the following is not true about M1 (The most liquid component of the money supply)?

  Case study-merck pharmaceuticals industry

Further understand the economic way of thinking and the accounting implications and give you an incentive to think critically about course information.

  What is the firms total cost function

Draw the AC function on the same graph. What is the firm's long-run supply curve? That is for every price p, how much will the firm produce in the long-run? Which curves are relevant now?

  Two-period consumption model of borrowing and saving

Consider the two-period consumption model of borrowing and saving. Suppose Claire has an income of m1 today and m2 a year from now and can borrow and lend at the interest rate r. She chooses consumption levels c1 and c2 given her well-behaved prefere..

  Making decisions to increase or decrease production

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

  What is the role of management

A recent book was titled the end of management. Suppose the technology evolves in such a way that a high percentage of employees do not work in the company office. They telecommute or work offline. What then Is the role of management Is there one,..

  Beliefs is not part of supply-side economics

Which of the following beliefs is not part of supply-side economics?

  What important function of money does statement disregard

(Functions of Money) "If an economy had only two goods (both nondurable), there would be no need for money because exchange would always be between those two goods." What important function of money does this statement disregard?

  Would the society that emphasized capitalist mode of

capitalism emphasizes fostering individualism while socialism emphasizes collectivism. a major criticism of capitalism

  Describe the economic phenomenon of agglomeration

Describe the economic phenomenon of agglomeration.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd