Using the given correlation matrix, which of the following statements is incorrect?
A) Gold and municipal bonds are perfectly, negatively correlated.
B) Gold and international stock mutual funds are positively correlated.
C) There is a negative correlation between the returns on international stock mutual funds and municipal bonds.
D) If one owned lots of municipal bonds, a good diversification strategy would be to purchase international stock mutual funds.

Question

Using the given correlation matrix, which of the following statements is incorrect? 
A) Gold and municipal bonds are perfectly, negatively correlated. 
B) Gold and international stock mutual funds are positively correlated. 
C) There is a negative correlation between the returns on international stock mutual funds and municipal bonds. 
D) If one owned lots of municipal bonds, a good diversification strategy would be to purchase international stock mutual funds.

Quizplus · Accepted Answer

The Answer of Using the given correlation matrix, which of the following statements is incorrect? 
A) Gold and municipal bonds are perfectly, negatively correlated. 
B) Gold and international stock mutual funds are positively correlated. 
C) There is a negative correlation between the returns on international stock mutual funds and municipal bonds. 
D) If one owned lots of municipal bonds, a good diversification strategy would be to purchase international stock mutual funds.

Using the Given Correlation Matrix, Which of the Following Statements