If there is no relationship between the rates of return of two assets over time, these assets are
A) positively correlated.
B) negatively correlated.
C) perfectly negatively correlated.
D) uncorrelated.

Question

Quizplus · Accepted Answer

If there is no relationship between the rates of return of two assets over time, it means their returns do not move in tandem in any consistent pattern. This scenario is described as the assets being uncorrelated.

If There Is No Relationship Between the Rates of Return