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the returns from two assets have a correlation of 0: Select one: A. Their returns are perfectly opposed (when one increases the other decreases) B. There is no discernible relationship between the returns of the two assets C. The portfolio consisting of the two ass

the returns from two assets have a correlation of 0: Select one: A. Their returns are perfectly opposed (when one increases the other decreases) B. There is no discernible relationship between the returns of the two assets C. The portfolio consisting of the two ass

Essentials Of Investments
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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If the returns from two assets have a correlation of 0:

Select one:
A.

Their returns are perfectly opposed (when one increases the other decreases)

B.

There is no discernible relationship between the returns of the two assets

C.

The portfolio consisting of the two assets will be less risky than any of the two assets held individually

D.

Their returns move in unison

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