Portfolio Management and Correlation

-1 when appropriate weights are chosen for the two assets

B.
0 when appropriate weights are chosen for the 2 assets, with both weights being positive

C.
0 when appropriate weights are chosen for the 2 assets, with one weight being negative and the other positive

D.
always greater than 0, regardless of the chosen weights for the 2 assets

E.
cannot answer without knowing the assets' betas

Sample Solution