If the Covariance Between the Returns on Two Assets Is

question 45

True/False

If the covariance between the returns on two assets is equal to zero, then the correlation coefficient must also be zero.

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Definitions:

Trade Credit

A form of credit extended by suppliers to their customers, allowing them to purchase goods or services and pay for them at a later date.

Insufficient Credit

A condition where an individual or entity lacks the necessary borrowing capacity due to limited credit history or poor credit ratings.

Open Charge Account

A type of credit account that allows customers to make purchases up to a pre-approved limit and pay for them at a later date.

Installment Account

A credit account where the borrower repays the principal and interest in regular, scheduled payments.