In Order to Construct a Riskless Portfolio Using Two Risky

question 33

Multiple Choice

In order to construct a riskless portfolio using two risky shares, one would need to find two shares with a correlation coefficient of ________.

• A)1.0
• B)0.5
• C)0
• D)-1.0

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Definitions:

Good B

An unspecified product referred to for the sake of example; characteristics or qualities would depend on the context.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price over a specified period of time.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period, typically sloping downward.

Quantity Demanded

The total amount of a good or service consumers are willing and able to purchase at a specific price level, during a specified period.