Choose the correct code

Statement 1: When the two securities returns are perfectly positively correlated, the risk of their portfolio is just a weighted average of the individual risks of the securities. In such case, diversification does not provide risk reduction but only risk averaging. Statement 2: Total risk of a portfolio of two securities can be completely eliminated […]

Choose the correct code

Statement 1: Punctuality and team spirit among employees of an organization has great contribution in enhancing profits of the business but they do not appear as an asset in the balance sheet. Statement 2: Financial statements do not reflect the correct financial position of a business.