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You Hold a Portfolio of Two Assets

Question 30

Multiple Choice

You hold a portfolio of two assets. When the return on one asset is positive, the return on the other asset is negative. We can conclude that:


A) the correlation between the two assets in the portfolio is negative.
B) there is no correlation between the two assets in the portfolio.
C) the correlation between the two assets in the portfolio is positive.
D) none of the above.

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