-The Correlation of Returns Between Asset a and Asset B

Multiple Choice

$$\begin{array}{l}\text { Expected Return (\%) }\\\begin{array} { c c c c } \text { Year } & \text { Asset A } & \text { Asset B } & \text { Asset C } \\\hline 1 & 6 & 8 & 6 \\2 & 7 & 7 & 7 \\3 & 8 & 6 & 8\end{array}\end{array}$$
-The correlation of returns between Asset A and Asset B can be characterized as (See Figure 7.1)

A) perfectly negatively correlated.
B) uncorrelated.
C) perfectly positively correlated.
D) cannot be determined.