A riskfree asset (a) has a return correlation coefficient with securities of 1. (b) has a negative return covariance with each s

Question

4 years ago

13

A riskfree asset (a) has a return correlation coefficient with securities of 1. (b) has a negative return covariance with each s

ecurity. (c) has a standard deviation of return of zero. (d) has a positive return covariance with many securities. (e) has a return correlation coefficient with securities of -1.

Mathematics

1 answer:

algol [13] · Answer 1 · 2022-01-29T14:45:56+03:00

algol [13]4 years ago

3 0

Answer:

C) Has a standard deviation of return of zero

Step-by-step explanation:

A riskfree asset is one in which return is certain in the future. With a standard deviation of zero, it means that there is certainty for return in investment.