Choose the correct code for the following statements being correct or incorrect.
Statement I : When the two securities returnsare 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 II : Total risk of a portfolio of two risk securities can be completely eliminated when their returns are perfectly negatively correlated and their proportionate holdings in the portfolio are inversely related to the relative individual risks of the securities.
Attitudes are not inherited but, acquired over a period of time. Individuals acquire attitudes from various sources. The most common sources of attitude are classical conditioning, operant conditioning, direct experience, vicarious learning, neighbourhood, family and peer groups and mass communication.
Our attitudes are inherited and also learned through direct and indirect experiences with the attitude objects. Some attitudes are more likely to be based on beliefs, some are more likely to be based on feelings, and some are more likely to be based on behaviors.
Attitudes are thought to have three components: an affective component (feelings), a behavioral component (the effect of the attitude on behavior), and a cognitive component (belief and knowledge).
Introduction: My name is Edwin Metz, I am a fair, energetic, helpful, brave, outstanding, nice, helpful person who loves writing and wants to share my knowledge and understanding with you.
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