CFA Practice Question

There are 410 practice questions for this study session.

CFA Practice Question

Covariance of returns is zero ______
A. when the return on one asset is below its expected value and the return on the other asset is also below its expected value.
B. if returns on the assets are unrelated.
C. when the co-movement between random variables is linear.
Explanation: Covariance of returns is zero if returns on the assets are unrelated.

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mc25456 covariance of return is zero if returns on the assets are unrelated.
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