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