2.99 See Answer

Question : Refer to Exercise 7.85. Compute the


Refer to Exercise 7.85. Compute the correlation matrix of the returns of the four banks. Briefly describe what the correlations tell you.
Data from Exercise 7.85:
An analyst recommends that you invest in a portfolio made up of Bank of Montreal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CM), and Royal Bank (RY). Why would it not useful in diversification?

2.99

See Answer