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Security a and Security B Have a Correlation Coefficient of 0

Question 54

Multiple Choice

Security A and Security B have a correlation coefficient of 0. If Security A's return is expected to increase by 10 percent, Security B's:


A) return should also increase by 10 percent.
B) return should decrease by 10 percent.
C) return should be zero.
D) expected return is impossible to determine from the above information.

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