The Correlation Coefficient of the Excess Returns for Portfolio Y

question 29

Multiple Choice

The correlation coefficient of the excess returns for Portfolio Y and the market is .8. This means the percentage of excess returns that cannot be attributed to the market is

• A) 64%.
• B) 36%.
• C) 20%.
• D) 16%.

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Definitions:

Bruise

An injury to the skin causing discoloration and swelling without breaking the surface.

Contusion

A bruise resulting from a blunt impact, causing bleeding under the skin without breaking the skin's surface.

Rule of Nines

A method used in the assessment of burns, dividing the body into sections of 9% (or multiples thereof) to estimate the total area affected.

Sunburn

Damage to the skin resulting from excessive exposure to ultraviolet (UV) radiation, usually from the sun, causing redness, pain, and sometimes blistering.