Question: In portfolio theory, what does a correlation coefficient close to 0 between two assets signify? Question 1 5 Answer a . The assets are perfectly
In portfolio theory, what does a correlation coefficient close to between two assets signify?
Question Answer
a
The assets are perfectly correlated.
b
The assets have little or no linear relationship.
c
The assets will have identical returns.
d
The assets are perfectly negatively correlated.
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