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

question 27

Multiple Choice

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

• A) +1
• B) -1
• C) 0
• D) cannot be calculated

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Definitions:

Development Of Motives

The formation or evolution of reasons behind individuals' behaviors, driving them to act in certain ways.

Maslow's Hierarchy

A theory of psychological development that prioritizes human needs in a pyramid structure, from basic physiological needs to self-actualization at the top.

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Involvement

The degree of interest, enthusiasm, or commitment an individual has towards a particular activity, cause, or issue.