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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Question
![21. Which of the following statements is most accurate? If the covariance of returns between
two assets is 0.0023, then:
A. the assets' risk is near zero.
B. the asset returns are unrelated.
abia
C. the asset returns have a positive relationship.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd290b8c5-8b47-468d-813d-c4c778a9012e%2F869f64f8-79f8-4ff6-b3f8-e230a6509111%2Fzotkms_processed.jpeg&w=3840&q=75)
Transcribed Image Text:21. Which of the following statements is most accurate? If the covariance of returns between
two assets is 0.0023, then:
A. the assets' risk is near zero.
B. the asset returns are unrelated.
abia
C. the asset returns have a positive relationship.
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