Question
The three extreme values of the correlation coefficient between two variables are -1, 0, +1. For the case of a two-assets portfolio which of the
The three extreme values of the correlation coefficient between two variables are -1, 0, +1. For the case of a two-assets portfolio which of the following correlation coefficients () will result in the lowest possible risk, assuming that other parameters stay the same.
a. = 0.
b. = -1.
c. = +1.
d. 0 < || < 1.
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Microeconomics
Authors: Christopher T.S. Ragan, Richard G Lipsey
14th canadian Edition
321866347, 978-0321866349
