A portfolio consisting of two risky securities can be made risk-less (i.e., σp = 0) if: The securities are perfectly negatively correlated. When two securities in a portfolio are perfectly negatively correlated, it means that they move in exact opposite directions. When one security's value goes up, the other's value goes down by the same amount, and vice versa. By combining two perfectly negatively correlated securities in a portfolio, the fluctuations cancel each other out, resulting in a risk-less portfolio. This is because any gain in one security offsets the loss in the other, and the overall portfolio value remains constant regardless of market movements.
Self-Determination Theory is a theory of motivation and personality that addresses three universal, innate and psychological needs these are
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Government has announced a Centrally Sponsored Scheme namely, “New India Literacy Programme” (NILP). The NILP will be implemented through _________...
Consider the following statements about the budget allocations of fiscal year 2023-24 across the ministries and choose which is the correct answer.
Which of the following statements is/are not correct in regards to FYP in India?
In order to settle an international trade in Indian rupee, an AD bank needs to open ______________ of correspondent bank/s of the partner trading countr...
The ------ risk arises from non-performance of the trading partners
The two basic measures of liquidity are?
What are the minimum financial asset requirements for an individual to qualify as an Accredited Investor under the IFSCA (Fund Management) Regulations, ...
Sale of a security that is not owned by the seller is called?
Consider the following statements regarding economic survey 2022-2023:
1. There was diversion of Wholesale Price Inflation (WPI) and Con...