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What is a cognitive bias and how might it affect investors' decision making?

The covariance of returns on Asset A and Asset B are negative.

a. What does this tell us about the correlation coefficient for their returns?

b. If we form a portfolio comprised of Asset A and Asset B, what is the relation between the portfolio's risk and the risks of Asset A and Asset B considered separately?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92067654

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