Multiple Choice
In order to completely eliminate the risk (i.e., a portfolio standard deviation of zero) in a two-asset portfolio, the correlation coefficient between the securities must be ____.
A) less than +1.0
B) equal to 0.0
C) less than 0.0
D) equal to -1.0
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q2: The _ theory of the yield curve
Q3: Richtex Brick has a current dividend of
Q4: According to the _, long-term interest rates
Q5: Security A's expected return is 10%, while
Q6: Dana has a portfolio of 8 securities,
Q7: The most relevant risk that must be
Q8: Kermit Industries' current common stock dividend is
Q9: Compute the risk premium for the stock
Q10: The _ is a statistical measure of
Q11: Gates Industries' current common stock dividend (year