If the correlation coefficient of two assets is zero, what conclusion can be drawn?

A. The two assets are positively correlated.

B. The two assets have an undetermined correlation

C. The two assets are perfectly correlated

D. The two assets are uncorrelated

Stock A has a standard deviation of 22 percent per year and stock B has a standard deviation of 11 percent per year. The correlation between Stock A and Stock B is .30. You have a portfolio of these two stocks wherein stock B has a portfolio weight of 35 percent. What's your portfolio variance?

A. .004218

B. .015312

C. .025235

D. .034682

What can potentially happen to risk when assets are perfectly negatively correlated to each other?

A. It increases by the degree of the correlation.

B. It's unaffected.

C. It can be completely eliminated.

D. It decreases by one half of the degree of the correlation