Table 8.1
-The correlation of returns between Asset A and Asset B can be characterized as ________. (See Table 8.1)
A) perfectly positively correlated
B) perfectly negatively correlated
C) uncorrelated
D) partially correlated

Question

Table 8.1 
-The correlation of returns between Asset A and Asset B can be characterized as ________. (See Table 8.1)
A) perfectly positively correlated 
B) perfectly negatively correlated 
C) uncorrelated 
D) partially correlated

Quizplus · Accepted Answer

The correlation coefficient between Asset A and Asset B is -1 in Table 8.1, indicating a perfect negative correlation.

Table 8.1 -The Correlation of Returns Between Asset a and Asset B