$$\begin{array}{l}
\text { Expected Return (\%) }\
\begin{array} { c c c c }
\text { Year } & \text { Asset A } & \text { Asset B } & \text { Asset C } \
\hline 1 & 6 & 8 & 6 \
2 & 7 & 7 & 7 \
3 & 8 & 6 & 8
\end{array}
\end{array}$$
-The correlation of returns between Asset A and Asset B can be characterized as (See Figure 7.1)
A) perfectly negatively correlated.
B) uncorrelated.
C) perfectly positively correlated.
D) cannot be determined.

Question

$$\begin{array}{l}
\text { Expected Return (\%) }\
\begin{array} { c c c c } 
\text { Year } & \text { Asset A } & \text { Asset B } & \text { Asset C } \
\hline 1 & 6 & 8 & 6 \
2 & 7 & 7 & 7 \
3 & 8 & 6 & 8
\end{array}
\end{array}$$
-The correlation of returns between Asset A and Asset B can be characterized as (See Figure 7.1)
A) perfectly negatively correlated.
B) uncorrelated.
C) perfectly positively correlated.
D) cannot be determined.

Quizplus · Accepted Answer

The Answer of $$\begin{array}{l}
\text { Expected Return (\%) }\
\begin{array} { c c c c } 
\text { Year } & \text { Asset A } & \text { Asset B } & \text { Asset C } \
\hline 1 & 6 & 8 & 6 \
2 & 7 & 7 & 7 \
3 & 8 & 6 & 8
\end{array}
\end{array}$$
-The correlation of returns between Asset A and Asset B can be characterized as (See Figure 7.1)
A) perfectly negatively correlated.
B) uncorrelated.
C) perfectly positively correlated.
D) cannot be determined.

-The Correlation of Returns Between Asset a and Asset B