The Correlation Coefficient Between the Market Return and a Risk-Free

question 91

Multiple Choice

The correlation coefficient between the market return and a risk-free asset would

• A) be +∞.
• B) be -∞.
• C) be +1.
• D) be -1.
• E) be Zero.

---

Definitions:

Golden Age

A period in history marked by peace, prosperity, and significant advancements in arts, science, and culture.

Keynesian Economics

Keynesian Economics is an economic theory stating that government intervention is necessary to manage aggregate demand in order to address or prevent economic recessions.

Reagan Administration

The period of U.S. presidency under Ronald Reagan, from 1981 to 1989, known for its conservative policies, economic reforms, and efforts to end the Cold War.

Tax Cuts

Reductions in the amount of taxes imposed by a government on individuals or entities, typically aimed at stimulating economic growth or achieving other policy objectives.