Multiple Choice
Suppose that a stock portfolio and a bond portfolio have a zero correlation.This means that ______.
A) the returns on the stock and bond portfolio tend to move inversely
B) the returns on the stock and bond portfolio tend to vary independently of each other
C) the returns on the stock and bond portfolio tend to move together
D) the covariance of the stock and bond portfolio will be positive
Correct Answer:
Verified
Correct Answer:
Verified
Q15: Consider two perfectly negatively correlated risky securities,
Q54: Which of the following is a
Q55: Which of the following correlation coefficients will
Q56: Market risk is also called _ and
Q57: The figures below show plots of monthly
Q60: Which of the following statistics cannot be
Q63: What is the standard deviation of a
Q64: Many current and retired Enron Corp.employees had
Q79: Diversification can reduce or eliminate _ risk.<br>A)
Q85: Consider an investment opportunity set formed with