The Correlation Between the Return on the Risk-Free Asset with a Constant

question 83

Multiple Choice

The correlation between the return on the risk-free asset with a constant return over time and the return on a risky asset is always:

• A) 1
• B) 0
• C) 1
• D) 0.5

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Definitions:

Persuasive

Able to convince others to agree with a viewpoint, undertake an action, or accept a proposal through logical, emotional, or ethical appeals.

Positive Emphasis

The practice of highlighting or focusing on positive aspects, achievements, or information in communication to influence perception or outcomes favorably.

Negative Information

Data or facts that have undesirable implications or convey a pessimistic outlook.

Limitations

The restrictions or constraints that prevent something from being fully achieved.