Correlation Has ________ Effect on the Expected Return of a Portfolio

question 9

Multiple Choice

Correlation has ________ effect on the expected return of a portfolio.

• A) a positive
• B) zero
• C) a negative
• D) none of the above

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Definitions:

Dimethylheptanoic Acid

denotes a hypothetical organic compound, potentially misnamed, suggesting a heptanoic acid derivative substituted with two methyl groups.

γ-hydroxypentanoic Acid

An organic compound characterized by a five-carbon chain with a hydroxyl group attached to the third carbon and a carboxylic acid group at the end.

γ-hydroxy-γ-methylbutyric Acid

An organic compound, structurally related to β-hydroxy-β-methylbutyrate (HMB), and is involved in the biosynthesis and metabolism of fatty acids.

δ-hydroxyvaleric Acid

An organic compound that is structurally a hydroxylated form of valeric (pentanoic) acid, where the hydroxyl group is on the δ-carbon.