Correlation of Returns Portfolio Risk Discussion
im taking finance class and i need you to answer the two discussions below with a short paragraph 5-6 sentences for each. this assignment has to be done in 12 hours.
1- Discuss why you would expect a difference in the correlation of returns portfolio risk. Specifically, why would you expect low correlation in the rates of return of domestic and foreign securities.
2- Define liquidity and discuss the factors that contribute to it. Give examples of a liquid asset and an illiquid asset, and discuss why they are considered liquid and illiquid.