60．An investor is considering adding another investment to an existing portfolio. To achieve the maximum diversification benefits, the investor should add an investment that has a correlation coefficient with the existing portfolio closest to:
Select exactly 1 answers from the following:
A. -1.0. B. -0.5. C. 0.0. D. +1.0.
答案和详解如下！
Feedback: Correct answer: A
Investment Analysis and Portfolio Management, 7th edition, Frank K. Reilly and Keith C. Brown (Dryden, 2003), pp. 221?22 2006 Modular Level I, Vol. IV, pp.763-764 Study Session 18-78-f list the components of the portfolio standard deviation formula, and explain which component is most important to consider when adding an investment to a portfolio
Maximum benefits from diversification are achieved when assets with perfect negative correlation are added to a portfolio. Some diversification benefits are achieved as long as the correlation is less than perfectly positive.
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发表于 2006-11-22 11:13
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