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In the context of portfolio theory, what does a positive covariance between two assets indicate? Question 3 4 Answer a . The assets have identical

In the context of portfolio theory, what does a positive covariance between two assets indicate?
Question 34Answer
a.
The assets have identical returns.
b.
The assets move in opposite directions.
c.
The assets move in the same direction.
d.
The covariance has no impact on the direction of asset movements.

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