In Order to Construct a Riskless Portfolio Using Two Risky

question 26

Multiple Choice

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

• A) 1.0
• B) 0.5
• C) 0
• D) -1.0

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Definitions:

Fixed Salary

A consistent amount of payment received by an employee, often on a monthly basis, regardless of hours worked.

Paycheck

A document or electronic transfer representing the amount of wages or salary paid to an employee for their work.

Continuous Reinforcement

A reinforcement strategy in which a desired behavior is rewarded every time it occurs.

Fixed Ratio Schedule

A schedule of reinforcement where a response is rewarded only after a specified number of responses, commonly used in behavior modification programs.