Two Assets Whose Returns Move in the Opposite Directions and Have

question 148

True/False

Two assets whose returns move in the opposite directions and have a correlation coefficient of -1 are either risk-free assets or low-risk assets.

---

Definitions:

Amphibians

A class of cold-blooded vertebrates that includes frogs, toads, newts, and salamanders, characterized by their life cycle stages both in water and on land.

Accompanying Figure

An illustration, chart, graph, or image that is provided alongside a text to complement, explain, or exemplify the information being discussed.

Nitrogenous Waste

Waste products containing nitrogen, such as ammonia, urea, or uric acid, produced by the metabolism of proteins and nucleic acids.

Freshwater Fishes

A diverse group of fish species that spend most or all of their lives in freshwater habitats such as lakes, rivers, and ponds, contrasting with saltwater or marine fishes.