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Which of the following statements are true? Choose all that apply. The covariance of any asset with the risk-free asset is zero. Correlation(A,B) = 0
Which of the following statements are true? Choose all that apply.
The covariance of any asset with the risk-free asset is zero. | ||
Correlation(A,B) = 0 if and only if either Variance(A) = 0 or Variance(B) = 0. | ||
Correlation(A,B) = 1 if and only if either Variance(A) < 0 or Variance(B) < 0. | ||
Correlation(A,B) = +1 if and only if Variance(A) = Variance(B). |
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