Two Assets Have a Coefficient of Correlation of -

question 10

Multiple Choice

Two assets have a coefficient of correlation of -.4.

• A)Combining these assets will increase risk.
• B)Combining these assets will have no effect on risk.
• C)Combining these assets may either raise or lower risk.
• D)Combining these assets will reduce risk.

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Definitions:

Over-Privileged

Describes individuals or groups having more advantages, resources, or opportunities than is fair or equitable.

Income

The amount of money received by a person or entity over a specified period, often derived from labor, capital, or other sources.

Family Life Cycle

A series of stages through which a family progresses over time, including bachelorhood, marriage, parenthood, and retirement.

Income

is the financial gain received by an individual or entity, typically through employment, investments, or other means.