Use the following information for 14-15.
Assume that you have a choice of two assets, A and B, and a portfolio of an equal share of the two assets. Assume also that the assets have the following statistics:
Table 10.1:

-See Table 10.1.The negative covariance between Asset A and Asset B means that when returns on Asset A decrease then,

Question

Use the following information for 14-15.
Assume that you have a choice of two assets, A and B, and a portfolio of an equal share of the two assets. Assume also that the assets have the following statistics:
Table 10.1:
 
-See Table 10.1.The negative covariance between Asset A and Asset B means that when returns on Asset A decrease then,

Quizplus · Accepted Answer

Negative covariance between two assets indicates that when the returns on one asset decrease, the returns on the other asset tend to move in the opposite direction, hence, increase.

Use the Following Information for 14-15