As the Correlation Coefficient Between Two Assets Decreases,the Shape of the Efficient

question 31

Multiple Choice

As the correlation coefficient between two assets decreases,the shape of the efficient frontier

• A) approaches a horizontal straight line.
• B) bends out.
• C) bends in.
• D) approaches a vertical straight line.
• E) none of the above.

---

Definitions:

Anatomical Structures

Structures within an organism that are studied in anatomy, such as bones, muscles, organs, and their arrangements.

Analogy

A comparison between two things, typically for the purpose of explanation or clarification.

Natural Selection

A key mechanism of evolution where individuals with traits better suited to their environment are more likely to survive and reproduce, leading to genetic changes in populations over time.

Reproductive Success

The passing of genes onto the next generation in a way that they too can pass those genes on.