1. Profile photo of Seyyo says

    Hello Sir,

    I just started watching the videos and I wanted to know in advance if Mergers and Acquisitions are well covered in the video lectures – I struggled in question 1 in the Dec 2014 exam and this time I want to be ready for it…

    Thank You.

    • Profile photo of John Moffat says

      I did not say that at all!

      I said that in real life, investments are positively correlated and so risk cannot be removed (the systematic risk will remain) but that it can potentially be reduced.

      Ice cream and umbrella was an extreme example where they were perfectly negatively correlated that does not occur in real life.

    • avatar says

      From the previous lectures, Tutor has clearly explained that when the standard deviation increases the risk also increases. Standard deviation is the measure of risk itself. Am I right admin? Correct me if I am wrong :) ?

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