Frank wants to include a new stock in his portfolio. The new stock is a zero-beta stock. What is the correlation of the zero-beta stock with Frank’s portfolio? Greater than 0. Less than 0. Unable to say. Equal to 0.
Frank wants to include a new stock in his portfolio. The new stock is a zero-beta stock. What is the correlation of the zero-beta stock with Frank’s portfolio? Greater than 0. Less than 0. Unable to say. Equal to 0.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Frank wants to include a new stock in his portfolio. The new stock is a zero-beta stock. What is the correlation of the zero-beta stock with Frank’s portfolio?
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Greater than 0. |
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Less than 0. |
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Unable to say. |
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Equal to 0. |
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