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:

Vastus Lateralis

A muscle of the thigh that is part of the quadriceps, responsible for extending the leg at the knee.

Muscle Recruitment

The process of activating additional muscle fibers to increase the force of muscular contraction in response to demand.

Motor Units

A single motor neuron and all the muscle fibers it innervates, functioning as a single operational unit in muscle contraction.

Sternocleidomastoid

A muscle of the chest arising from the sternum and inner part of the clavicle.