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The correlation of the returns of a risk-free Treasury bond with the returns of the general stock market will be A) equal to 1.0. B)
The correlation of the returns of a risk-free Treasury bond with the returns of the general stock market will be
A) equal to 1.0. | ||
B) equal to -1.0 | ||
C) equal to 0.0. | ||
D) between -1.0 and +1.0, depending on the yield-to-maturity of the Treasury bond. |
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