The Correlation of the Returns of a Risk-Free Treasury Bond

question 3

Multiple Choice

The correlation of the returns of a risk-free Treasury bond with the returns of the general stock market will be

• A)equal to 0.0.
• B)between -1.0 and +1.0, depending on the yield-to-maturity of the Treasury bond.
• C)equal to 1.0.
• D)equal to -1.0

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Definitions:

Kinsey's Survey

A comprehensive study of human sexual behavior conducted by Alfred Kinsey and his colleagues, renowned for its insight into the complexity of sexual practices.

Homosexual Orientations

A sexual orientation characterized by a romantic or sexual attraction to individuals of the same gender.

Nonrandom Sample

A sample that is not selected using random methods, potentially leading to biased outcomes due to the lack of representativeness.

Nonrepresentative Sample

A sample that does not accurately reflect the characteristics of the broader population, potentially leading to biased results.