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CTFA · Question #47

If two projects are completely independent (or unrelated), the measure of correlation between them is:

The correct answer is A. 0. See the full explanation below for the reasoning.

Investment Management

Question

If two projects are completely independent (or unrelated), the measure of correlation between them is:

Options

  • A0
  • B0.5
  • C1
  • D-1

How the community answered

(29 responses)
  • A
    76% (22)
  • B
    14% (4)
  • C
    7% (2)
  • D
    3% (1)

Topics

#correlation#portfolio theory#project independence#diversification

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