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suppose that a stock portfolio and a bond portfolio have a zero correlation. This means that: A. the returns on the stock and bond portfolios
suppose that a stock portfolio and a bond portfolio have a zero correlation. This means that:
A. the returns on the stock and bond portfolios tend to move inversely.
B. the returns on the stock and bond portfolio tend to vary independently of each other.
C. the returns on the stock and bond portfolio tend to move together.
D. the covariance of the stock and bond portfolios will be positive.
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