Question
1. Perfectly ________ correlated series move exactly together and have a correlation coefficient of ________, while perfectly ________ correlated series move exactly in opposite directions
1. Perfectly ________ correlated series move exactly together and have a correlation coefficient of ________, while perfectly ________ correlated series move exactly in opposite directions and have a correlation coefficient of ________.
A. negatively; -1; positively; +1
B. negatively; +1; positively; -1
C. positively; -1; negatively; +1
D. positively; +1; negatively; -1
2. If two assets having perfectly negatively correlated returns are combined in a portfolio, then some combination of those two assets will ________.
A. have more risk than either asset does on its own
B. have no risk at all
C. have a higher return than either asset does on its own
D. have a lower return than either asset does on its own
3. Systematic risk is also referred to as ________.
A. business specific risk
B. internal risk
C. nondiversifiable risk
D. maturity risk
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