If the Correlation Between Two Assets Is __________, All Risk

question 23

Multiple Choice

If the correlation between two assets is __________, all risk can be eliminated in a portfolio.

• A) - 100
• B) - 1
• C) 0
• D) + 1
• E) + 100

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Definitions:

Repetitive Manufacture

A production process in which identical products are continuously produced over a long period of time.

Crossover Point

The point at which two different strategies, options, or actions have equal costs or benefits, used in decision-making to determine the most viable option under specific conditions.

Highly Automated

Referring to processes, systems, or operations that extensively utilize automation technology to minimize human intervention.

Hand Labor

Work done manually by humans without the aid of advanced machinery, often requiring skilled craftsmanship.