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:

Parliament Actions

The activities and legislative processes carried out by a parliament, which include the drafting, discussion, and passing of laws.

James Otis

An American colonial political leader and lawyer known for his opposition to the writs of assistance and his famous phrase, "Taxation without representation is tyranny."

Sugar Act

A British law enacted in 1764 that imposed taxes on sugar and molasses imported into the American colonies, which was a cause of dissent leading to the American Revolution.

Stamp Act

A law passed by the British Parliament in 1765 requiring the use of stamped paper for official documents in the American colonies, widely protested and seen as a direct tax without colonial consent.