The portfolio of a risk-free asset and a risky asset has a better riskreturn tradeoff than investing
Question:
The portfolio of a risk-free asset and a risky asset has a better risk–return tradeoff than investing in only one asset type because the correlation between the risk-free asset and the risky asset is equal to:
A. -1.0.
B. 0.0.
C. 1.0.
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B is correct A portfolio of the riskfree asset and ...View the full answer
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Related Book For 
Investments Principles Of Portfolio And Equity Analysis
ISBN: 9780470915806
1st Edition
Authors: Michael McMillan, Jerald E. Pinto, Wendy L. Pirie, Gerhard Van De Venter, Lawrence E. Kochard
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