Explain the significance of correlation coefficient

Assignment Help Finance Basics
Reference no: EM133060209

Explain the significance of correlation coefficient in efficient diversification. No need to draw a graph.

Reference no: EM133060209

Questions Cloud

Explain the principles of the constitution : Explain the Principles of the Constitution. Find two articles for each principle from current issues and events taking place in political news.
Calculate the first semi-annual coupon payment : Consider an investor who purchases a Treasury inflation-indexed note with an original principal amount of $100,000, a 4.250 percent annual coupon rate (coupon i
Forward discount on the currency : The interest rate in Indonesia is commonly higher than the interest rate in the United States, which reflects a high expected rate of inflation there.
Risk-return trade-off and diversification : Briefly explain the important aspects that you highlight to the client when you explain the above concepts.
Explain the significance of correlation coefficient : Explain the significance of correlation coefficient in efficient diversification. No need to draw a graph.
Form a new funds management firm : You and a few of your friends who have been working for an investment management company have planned to leave the current employer and to form a new funds mana
Significance of correlation coefficient : Explain the significance of correlation coefficient in efficient diversification
Perpetual expected coupons : A firm has equity with market value $100 million and debt with market value at $70 million. The debt pays perpetual expected coupons of $3.5 million annually. T
Explain the relationships between dividend policy : Explain the relationships between dividend policy and (i) stock price and (ii) the cost of equity under each dividend policy theory.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

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