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    Principles of Corporate Finance Study Set 2
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    Exam 8: Portfolio Theory and the Capital Asset Pricing Model
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    The Correlation Coefficient Between the Efficient Portfolio and the Risk-Free
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The Correlation Coefficient Between the Efficient Portfolio and the Risk-Free

Question 35

Question 35

Multiple Choice

The correlation coefficient between the efficient portfolio and the risk-free asset is


A) +1.0.
B) -1.0.
C) 0.0.
D) Further information is needed.

Correct Answer:

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