Suppose that a stock portfolio and a bond portfolio have a zero correlation. This means that Multiple Choice the covariance of the stock and bond portfolios will be positive O the returns on the stock and bond portfolios tend to vary independently of each other O the returns on the stock and bond portfolios tend to move inversely the returns on the stock and bond portfolios tend to move together
Suppose that a stock portfolio and a bond portfolio have a zero correlation. This means that Multiple Choice the covariance of the stock and bond portfolios will be positive O the returns on the stock and bond portfolios tend to vary independently of each other O the returns on the stock and bond portfolios tend to move inversely the returns on the stock and bond portfolios tend to move together
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 21P
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