Security a and Security B Have a Correlation Coefficient of 0.If

question 12

Multiple Choice

Security A and Security B have a correlation coefficient of 0.If Security A's return is expected to increase by 10 percent,

• A)Security B's return should also increase by 10 percent
• B)Security B's return should decrease by 10 percent
• C)Security B's return should be zero
• D)Security B's return is impossible to determine from the above information