Consider a risky asset that has a standard deviation of returns of 15.Calculate the correlation between the risky asset and a risk free asset.
A) 1.0
B) 0.0
C) -1.0
D) 0.5
E) -0.5

Name: Consider a risky asset that has a standard deviation of returns of 15.Calculate the correlation between the risky asset and a risk free asset. A) 1.0 B) 0.0 C) -1.0 D) 0.5 E) -0.5
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Question

Quizplus · Accepted Answer

The correlation between a risky asset and a risk-free asset is always zero.

Consider a Risky Asset That Has a Standard Deviation of Returns