Increasing the number of assets in an equally

Assignment Help Finance Basics
Reference no: EM132433938

Explain if the following statements about diversi?cation are true or false, and why.

i) In theory, by increasing the number of assets in an equally weighted portfolio, it is possible to reduce the portfolio variance to zero.

ii) In practice, su?cient diversi?cation is achieved with 30-40 stocks.

Reference no: EM132433938

Questions Cloud

What messages support from atypical allies : What policy reforms could make these programs more efficient?How do these changes in policy affect farm size and the types of crops grown?
Describe the biometric techniques in brief : Many people believe that the use of biometrics is an invasion of privacy. For example, an eye scanning device records the inner structure of a person's.
How safe is the information that is stored : In 80 words or more when cloud computing is handled by third and outside parties, how safe is the information that is stored and who would have access to it?
What kind of full systems change in promotional marketing : What kind of full systems change would reduce the incentive for the private food sector to engage in promotional marketing in the first place?
Increasing the number of assets in an equally : i) In theory, by increasing the number of assets in an equally weighted portfolio, it is possible to reduce the portfolio variance to zero.
Calculate rosewood net income : Question 1: Calculate Rosewood's net income. Question 2: Calculate the total of Rosewood's net income and interest payments.
Discuss body of literature that is used to motivate research : Briefly discuss the body of literature that is used to motivate the research. Emphasize the shortcomings in the prior literature that you plan to address.
What is the present value of the cash flows : If the correct discount rate for such a stream of cash flows is 10% then what is the present value of the cash flows?
What is meant by international portfolio diversification : What is meant by international portfolio diversification? List and discuss the additional benefits and risk of this investment choice

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