Correlation between the assets is positive or negative

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Reference no: EM132009399

Suppose that you hold a portfolio of three assets: wholesale store Costco, Russian oil company Lukoil, and an exchange traded fund (ETF) that specializes in gold.

Would you say that correlation between the assets is positive or negative? Explain.

Would you agree that adding a stock from a cosmetics industry will increase the portfolio risk? Why or why not?

Reference no: EM132009399

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