Question 40 Suppose that a stock portfolio and a bond portfolio have a...

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Finance

Question 40

  1. Suppose that a stock portfolio and a bond portfolio have a zero correlation. This means that ______.

    the returns on the stock and bond portfolios tend to move together

    the covariance of the stock and bond portfolios will be positive

    the returns on the stock and bond portfolios tend to move inversely

    the returns on the stock and bond portfolios tend to vary independently of each other

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