You have two equal investments that always have exactly opposite returns. how will your total value of both investments vary over time. a. it will go upb. it will go downc. it will stay the same

Question

Business

Adan Mercer

23 June, 07:39

You have two equal investments that always have exactly opposite returns. how will your total value of both investments vary over time. a. it will go upb. it will go downc. it will stay the same

+3

Answers (1)

Know the Answer?

Frida Monroe · Answer 1

c. it will stay the same

Explanation:

Without any other information available, and assuming that opposite returns means that when one investment gain X USD, the second invest loss - X USD, over the time the total value both investments remain the same. The value of investments, in this case, is the total portfolio value. Nevertheless, if opposite returns means that the gains are collected even though both returns are created because of divergent causes, then the correct answer would A (it will go up) and not C.