A Two-Asset Portfolio with a Standard Deviation of Zero Can

question 14

Multiple Choice

A two-asset portfolio with a standard deviation of zero can be formed when

• A) the assets have a correlation coefficient less than zero.
• B) the assets have a correlation coefficient equal to zero.
• C) the assets have a correlation coefficient greater than zero.
• D) the assets have a correlation coefficient equal to one.
• E) the assets have a correlation coefficient equal to negative one.

---

Definitions:

Conduct Disorder

A mental disorder diagnosed in childhood or adolescence characterized by a long-term pattern of disregarding the rights of others and violation of societal norms or rules.

Attention-Deficit/Hyperactivity Disorder

A neurological disorder characterized by difficulty maintaining attention, impulsivity, and hyperactivity.

Antisocial Personality Disorder

A psychological condition marked by persistent neglect or infringement of other people's rights.

Antisocial Personality Disorder

A mental health condition characterized by a long-term pattern of manipulating, exploiting, or violating the rights of others.