When the Historical Returns of an Asset Are Plotted Against

question 57

Multiple Choice

When the historical returns of an asset are plotted against the historical returns on the market portfolio and the line has a slope of zero, then

• A)the returns on the asset are infinite relative to the market portfolio.
• B)the returns on the asset tend to move in an opposite direction from the market portfolio.
• C)the returns on the asset are independent of the returns on the market portfolio.
• D)the returns on the asset tend to move in the same direction as the market portfolio.

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Definitions:

Plant Cultivation

The process of growing plants in a controlled environment, optimizing their development and yield.

Fertilize

The act of adding nutrients to soil or directly to plants to promote growth and increase yields, often involving substances like compost or chemical fertilizers.

Soil

The top layer of the earth's surface, composed of organic matter, minerals, gases, liquids, and organisms, supporting plant life.

Wood Bison

A North American species of bison that is the largest land animal in North America, distinct from and larger than the plains bison.