Walter Has His Entire Portfolio Invested in the Stock of the Company

question 23

Multiple Choice

Walter has his entire portfolio invested in the stock of the company where he works. He is considering purchasing one of four ETFs, each of which has the same expected return, but has a different correlation with his portfolio. Walter should choose the ETF that has a correlation of:

• A) -0.3.
• B) 0.0.
• C) 0.5.
• D) 1.0.

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Definitions:

Format

The arrangement, structure, or layout of data, which dictates how it is stored, displayed, or transmitted.

Fgets()

Fgets() is a function in C that reads a line from a specified stream and stores it into the string pointed to, stopping when a newline character is found.

End Of File

A special marker or condition in file handling that indicates no more data is available for reading from a file.

'\0'

A null character used in C and some other programming languages to denote the end of a string.