Question: What does a covariance of zero between two assets in a portfolio imply? Question 3 Answer a . The assets have identical variances. b .

What does a covariance of zero between two assets in a portfolio imply?
Question 3Answer
a.
The assets have identical variances.
b.
The assets are perfectly correlated.
c.
The assets are inversely correlated.
d.
The assets have no linear relationship in their returns.

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