Theoretically,the correlation coefficient between a completely diversified portfolio and the market portfolio should be
A) -1.0.
B) +1.0.
C) 0.0.
D) -0.5.
E) +0.5.

Name: Theoretically,the correlation coefficient between a completely diversified portfolio and the market portfolio should be A) -1.0. B) +1.0. C) 0.0. D) -0.5. E) +0.5.
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Quizplus · Accepted Answer

A completely diversified portfolio should have a correlation coefficient of +1.0 with the market portfolio, as it reflects the market's systematic risk.

Theoretically,the Correlation Coefficient Between a Completely Diversified Portfolio and the Market