2. The blend GSD cannot be any smaller than the smallest GSD component value.Yes it can. That's the whole point of diversifying.a. The reduced GSD goal of a blend can be achieved if, and only if, at least two of the components are negatively correlated (i.e., the components vary “out of phase” so that when one tends to go up, another tends to go down).Incorrect. It is sufficient that the correlation be less than 1. (The lower the better, and negative is really good.)
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra