The correlation between the efficient portfolio and the risk-free asset is:
A) +1
B) -1
C) 0
D) cannot be calculated
Correct Answer:
Verified
Q19: Portfolio Theory was first developed by:
A) Merton
Q20: The efficient portfolios:
I. have only unique risk
II.
Q21: Sharpe ratio is defined as:
A) (rP -
Q22: If the covariance of Stock A with
Q23: The correlation measures the:
A) Rate of movements
Q25: A stock with a beta of 1.
Q26: The main shortcoming of CAPM is that
Q27: In the presence of a risk-free asset,
Q28: If the correlation coefficient between Stock A
Q29: If the beta of Amazon.com is 2.2,
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