If Two Securities Have the Same Positive Mean Returns and They

question 7

True/False

If two securities have the same positive mean returns and they are perfectly,negatively correlated,an investor in such securities will earn a positive return with zero risk.

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Definitions:

Asperger's syndrome

A developmental disorder affecting the ability to effectively socialize and communicate, considered to be on the high-functioning end of the autism spectrum.

Arthritis

Inflammation of the joints.

African Americans

A racial or ethnic group in the United States with ancestry from the black racial groups of Africa.

European Americans

Individuals in the United States who identify as having ancestral origins in Europe.