If Two Securities Have the Same Positive Mean Returns and They

question 7

True/False

If two securities have the same positive mean returns and they are perfectly,negatively correlated,an investor in such securities will earn a positive return with zero risk.

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Definitions:

Donatello

A Florentine sculptor of the Renaissance, well-known for his life-like sculptures and innovative techniques, including the development of relief sculpture.

Equestrian Statue

A statue representing a figure, typically historical or legendary, riding a horse, symbolizing leadership and valor.

Gattamelata

A renowned bronze equestrian statue created by the sculptor Donatello, depicting the condottiero Erasmo da Narni.

Or San Michele

A church and former grain market in Florence, Italy, noted for its architecture and the statues of saints by various artists adorning its exterior.