A ___ Asset Is an Asset Whose Return Over a Given

question 8

Multiple Choice

A ___ asset is an asset whose return over a given holding period is certain and known at the beginning of the holding period.

• A) certain or risky
• B) risk-neutral
• C) zero risk
• D) risk free

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Definitions:

Nondirectional Correlation

A type of correlation that indicates a statistical relationship between two variables without specifying whether the relationship is positive or negative.

Negative Correlation

A connection between two variables where as one variable rises, the other falls.

Direct Correlation

A relationship between two variables where they move in the same direction.

Nondirectional Correlation

A type of correlation where the direction (positive or negative) of the relationship between variables is not specified.