A Security Has a Zero Covariance with the Market

question 57

Multiple Choice

A security has a zero covariance with the market. This means that:

• A)the return on the security is always equal to that of the market.
• B)the return on the security moves in the same direction as the market return.
• C)the security is a risk-free security.
• D)there is no identifiable relationship between the return on the security and that of the market.
• E)the return on the security must vary more than that of the market.

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Definitions:

Saminid Mausoleum

A notable architectural landmark in Bukhara, Uzbekistan, representing one of the earliest examples of Islamic architecture in Central Asia, dating back to the 10th century.

Dome-on-Cube Form

An architectural element characterized by a dome placed directly on top of a cubic base or structure, commonly found in Byzantine and Islamic architecture.

Bukhara

A historic city in Uzbekistan, known for its rich history as a center of trade, culture, and religion on the Silk Road.

Islamic Religious Architecture

Architecture associated with Islam, including structures like mosques, madrasas, and mausoleums, often featuring specific elements like minarets, mihrabs, and Islamic geometric patterns.