Multiple Choice
The term Corr( R , T ) = 0 tells us that:
A) all error terms of company R and T are 0.
B) the unsystematic risk of companies R and T is unrelated or uncorrelated.
C) the correlation between the returns of companies R and T is -1.
D) the systematic risk companies R and T is unrelated.
E) None of the above.
Correct Answer:

Verified
Correct Answer:
Verified
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