Why is measuring interdependencies among assets' returns, or, volatilities, important in risk management? Discuss the concept of interdependencies and what implications interdependencies have during periods of financial crises (such as the 2007-09 financial crisis)

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
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Why is measuring interdependencies among assets' returns, or, volatilities, important in risk management? Discuss the concept of interdependencies and what implications interdependencies have during periods of financial crises (such as the 2007-09 financial crisis) 

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