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:

Adducts Thigh

The action performed by muscles that move the thigh inward toward the midline of the body.

Flexes Knee

The action or movement that decreases the angle between the femur and the lower leg, typically performed by muscles like the hamstrings.

Gracilis

A long, slender muscle located in the inner thigh, involved in hip adduction and knee flexion.

Calcaneus

The large bone forming the heel of the foot, also known as the heel bone.