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What does it mean when we say that the correlation

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Reference no: EM13505564

1.What is the difference between business risk and financial risk?

2.Why does the riskiness of portfolios have to be looked at differently than the riskiness of individual assets?

3.What happens to the riskiness of a portfolio if assets with very low correlations (even negative correlations) are combined?

4.What does it mean when we say that the correlation coefficient for two variables is -1? What does it mean if this value were zero? What does it mean if it were +1?

5.What is nondiversifiable risk? How is it measured?

Reference no: EM13505564

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