The Correlation Coefficient Between the Efficient Portfolio and the Risk-Free

question 83

Multiple Choice

The correlation coefficient between the efficient portfolio and the risk-free asset is

• A)+1.0.
• B)−1.0.
• C)0.0.
• D)Further information is needed.

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Definitions:

Dolphins

Dolphins are marine mammals known for their intelligence, social behavior, and playful antics, inhabiting oceans and seas worldwide.

Grasshoppers

Insects belonging to the order Orthoptera, characterized by their long hind legs for jumping and typically feeding on plants.

Ants

Social insects of the family Formicidae, known for their complex colonies and behaviors, including farming, warfare, and symbiotic relationships with other organisms.

Bats

The only mammals capable of sustained flight, known for their echolocation ability, which they use to navigate and find food in the dark.